TT Ltd$.,$ a Canadian$-$controlled private corporation $($CCPC$),$ operates a wholesale and retail

business. Financial statements for the year ended December $31,2023,$ report a net income before

tax of $$522,000.$

You have been retained to determine the corporation's tax liability and provide advice on other

tax matters.

TT LTD$.$

$2023$ Financial Information

TT$\text{'}$s income for accounting purposes for $2023$ is summarized as follows:

Interest income consists of $$7,000$ from a GIC that matured in $2023$ and $$6,000$ from

interest on overdue wholesale accounts receivable.

Dividend income consists of $$5,000$ from public corporations $($eligible$)$ and $$10,000$ from

JJ Inc., a CCPC $($non$-$eligible$).$ TT owns $60\%$ of JJ$\text{'}$s share capital. JJ earned an active business

income of $$140,000$ in $2023$ and claimed the small business deduction. The business limit

allocated to $JJ$ was $$100,000.$ As a result of its dividend distribution, $JJ$ received a dividend

refund of $$4,000$ from its RDTOH account.

A review of TT$\text{'}$s $2022$ corporate tax return provides the following information:

On September $1,2023,$ TT purchased a warehouse. The purchase price included

goodwill of $$120,000$ and real estate of $$600,000($land $$100,000,$ building $$500,000).$

Immediately after the purchase, the company spent $$10,000$ on landscaping and $$4,000$ on a

contractor fee for an electrical service connection and decided to include these expense in the

capital cost of the property.

The following items were included in various expense accounts:

Assume that the Capital Cost Allowance is correctly calculated as $$25,500.$

On December $31,2023,$ TT paid its shareholders a non$-$eligible dividend of $$100,000.$

Required:

A$.$ Under Part I of the Income Tax Act, calculate TT$\text{'}$s minimum net income for tax purposes and

minimum taxable income for the $2023$ taxation year.

B$.$ Based on your answer to part $($a$),$ calculate the minimum Part I and Part IV federal income

tax, refundable dividend tax on hand $($RDTOH$),$ and dividend refund $($if any$)$ for the $2023$

taxation year.