TULIPS LIMITED

Tulips Limited $($TL$)$ is a Canadian controlled private corporation incorporated in Newfoundland

and Labrador. TL is a seller of luxury hand$-$crafted wooden furniture that TL buys from artisans

all over the world. The company operates out of St$.$ John's NL and has been in business for over

$35$

years.TL prepares its financial statements in accordance with ASPE and reported net

business income before taxes of $$948,450$ for its fiscal year ending December $31,2023.$

The following is additional information as it relates to the calculation of net income before

taxes:

The financial statements included a deduction for $$45,000$ for donations to registered

Canadian Charities

Employee benefits expensed in the year included $$37,500$ for golf memberships for TL$\text{'}$s

account managers and company executives.

General and administrative items expensed for accounting purposes includes:

a$.$ Cost of investigating a site for a proposed warehouse $($site was rejected$)-$ $$25,000$

b$.$ Client meals and entertainment $-$ $$73,500$

c$.$ Company holiday party $-$ $$18,000$

d$.$ Warranty accrual of $$1,100,000($actual costs in the year were $$850,000)$

Professional fees expensed in the year included

a$.$ Audit fees $-$ $$55,000$

b$.$ Legal fees for general corporate affairs $$11,500$

c$.$ Legal fees to enforce collection of overdue accounts receivable $-$ $$23,500$

d$.$ Financing fees relating to obtaining new capital assets $$10,000$

The UCC balances on January $1,2023,$ were:

a$.$ Class $1($non$-$residential$)-$ $$4,000,000$

b$.$ Class $8-$ $$900,000$

c$.$ Class $10-$ $$165,000$

d$.$ Class $12-$ nil

TL had the following capital asset additions and disposals during the year

a$.$ A luxury automobile was purchased for $$70,000($ignore HST$)$ for the company's CFO.

b$.$ Permanent landscaping around the company's building $($completely paid for but added to a

capital asset on the financial statements$)-$$$120,000$

d$.$ Small tools having an aggregate cost of $$350,000$ were sold off for proceeds of $$100,000.$

e$.$ New furniture and fixtures were acquired for $$325,000$ in the year. Old fixtures originally

costing $$150,000$ were disposed for proceeds of $$25,000$

f$.$ $$200,000$ was spent to acquire a patent for a new proprietary lacquer formula that improves

the water resistance and shine of outdoor furniture sold by TL$.$ The patent was acquired

November $1$ and has a $20-$year life.

g$.$ For accounting purposes, the dispositions of the, fixtures, and small tools resulted in a net

loss on disposal of assets of $$82,000$ on the income statement.

In addition to the net business income in $2023,$ TL also had the following income.

Capital gains from the sale of investments $($public company shares$)$ $$160,000$

Taxable dividends from Canadian public companies $$32,000$

Taxable dividends from Rose Limited $$5,000$

Interest earned on five year bonds $$30,000$

$*$Tulips Limited owns $100\%$ of the shares of Rose Limited, a CCPC$.$ For the current year, Rose

Limited claimed the small$-$business deduction on $$80,000$ of its active business income.

Additional information:

Net capital losses at the end of Year $2022$ carried forward were $$35,000$

Non$-$capital losses at the end of Year $2022$ carried forward were $$50,000$

At the end of $2022,$ TL had a balance in its non$-$eligible refundable dividend tax on hand

$($NERDTOH$)$ of $$18,000,$ eligible refundable dividend tax on hand $($ERDTOH$)$ of $$0,$ and

GRIP of $$2,000.$ Rose Limited received a dividend refund of $$1,917$ from its NERDTOH

when it paid its dividend of $$5,000$ to $TL.$

TL received a non$-$eligible dividend refund of $$3,000$ in $2022,$ based on dividends paid

that year.

Eligible dividends of $$90,000$ were paid by TL on December $31,2023.$

The taxable capital of TL and Rose Limited, combined, is always below $$10,000,000.$ In $2022,$ the combined adjusted investment income was below $$50,000.$

Determine Tulip Limited's GRIP balance $at$ the end $of2023.$