The following information relates to the investment income received by Ms. I. N. Vestor during 2018:

1. Eligible cash dividends received from taxable Canadian corporations:

(a) Loewen Group Inc. $ 150 (actual amount)

(b) Toromont Industries Ltd. 960 (actual amount)

(c) Agrium Inc. 850 (actual amount)

(2) During 2018, Ms. Vestor received a stock dividend of 1,000 common shares from

Cott Corporation, a Canadian public corporation. The total market value of these shares at the date of the dividend declaration was $500.

3. On April 1, 2017, Ms. Vestor purchased a one-year Guaranteed Investment Certificate in the amount of $5,000 at an interest rate of 8.5 %. 5

4. On August 5, 2018, Ms. Vestor purchased a 90-Day, $10,000 Treasury bill at a cost of $9,548. 6

5. On December 1, 2018, Ms. Vestor purchased a five-year Guaranteed Investment Certificate in the amount of $10,000 at an interest rate of 7.75 %.

6. During 2018, she purchased 100 common shares of Canadian Tire Acceptance Limited as a birthday present for her spouse. Her spouse received dividends from these shares in 2018 in the amount of $450 (actual amount).

7. To assist her 19 year-old daughter with her university tuition payments, Ms. Vestor transferred to her daughter the right to receive the interest income from an Ontario Hydro Bond. Her daughter received $1,500 in interest from the bond in 2018.

8. During 2018, Ms. Vestor received dividends from Boeing Inc., a U.S. corporation. The actual amount of dividends received in 2018, net of a 15% withholding tax, was $850 in U.S. currency. Assume that the average exchange rate for 2018 was $1.00 U.S. = $1.2986 Canadian.

9. Ms. Vestor paid the following amounts in 2018:

(a) Investment counsel fees $ 615

(b) Interest on funds borrowed to purchase a vehicle 1,500

(c) Safety deposit box rental 25

BTAX1 SUPPLEMENTARY ASSIGNMENT #1 Page 5 of 5

Required: Show your calculations!

1. Calculate Ms. Vestor's NET INVESTMENT INCOME for 2018.

2. Calculate the federal dividend tax credit that Ms. Vestor will be able to claim on her 2018 tax return.