Valley View Ltd. is a Canadian controlled private corporation that sells farm supplies. It owns 70% of the outstanding shares of Lindeman Inc.

On October 1, 2020, Lindeman Inc. declared and paid a non-eligible dividend of $31,000, of which Valley View Ltd. received $21,700 (70%).

As a result of paying the dividend, Lindeman Inc. received a dividend refund in the amount of $11,780.

Other income that was reported by Valley View Ltd. consisted of the following amounts:

Capital Gain $9,200

Eligible Dividends From Telus Common Shares 900

Interest 450

The capital gain was on the sale of land that was formerly used as a storage area for inventories. Improved inventory control procedures have eliminated the need for this land.

The interest is on deposits of temporary cash balances set aside for the purchase of inventories.

The 2019 dividend refund was $4,000.

The December 31, 2019 balance in the corporations GRIP was $2,500.

On January 1, 2020, the Eligible RDTOH balance is $1,100

and Non-eligible RDTOH balance is $4,950.

The Companys Taxable Income for the year ending December 31, 2020 was $44,000. No foreign income was included in this total.

Assume the Part I Tax Payable for the year ending December 31, 2020 was correctly calculated as $13,000 (so you dont need to calculate the Part I Tax Payable).

Because of its association with Lindeman Inc., its share of the annual business limit on income eligible for the small business deduction is $10,000.

As Valley Views active business income is greater than $10,000, the amount of income that is eligible for small business deduction is equal to $10,000.

Valley View paid taxable dividends of $28,000 during 2020.

The corporations policy is to designate dividends as eligible only to the extent that a refund is available on their payment.

For 2019, Valley View and Lindeman had combined ADJUSTED Aggregate Investment Income of $32,485. Their Taxable Capital Employed In Canada totalled $6,426,000 for 2019.

Required: For the taxation year ending December 31, 2020, calculate : The dividend refund, showing separately refunds on eligible and non-eligible dividends for Valley View.