What are the main objectives of the government budget.

(10 points) ABC Life, a Canadian life insurance company, has two inforce policies: a participating whole life policy issued in 2000 and a Single Premium Deferred Annuity issued in 2017. You are given: Year Participating Whole Life Insurance 2016 2017 Gross Annual Premium 9,000 9,000 Reinsurance Premium 3,000 3,000 Annual Dividend paid in cash 1,000 1,000 Cash Surrender Value (Policy anniversary) 24,200 24,400 Year End Gross Statutory Reserve 33,100 33,500 Year End Net Statutory Reserve 31,600 32,000 Single Premium Deferred Annuity Single Premium 250,000 Commissions paid 2,500 Year End Net Statutory Reserve 245,000 The whole life policy is reinsured with a registered reinsurer. The policyholder purchased the life insurance policy while living in Ontario, where the premium tax rate is 2%. After the policy was issued, the policyholder moved to Nunavut where the premium tax rate is 3%. (a) (3 points) (i) Outline considerations in determining premium tax for these two policies. (ii) Determine the premium tax payable in 2017 for these two policies. Show all work and justify your answer.{'1} (*1 points] Taxable income reported for the participating Whole life policyr with respect to accrual taxation is 400. The bond yield rate used for the Investment Income Tax {TIT} calculation is 2.39%. {i} Describe the process for determining the bond yield rate used for the HT calculation. {ii} Determine the Ell] T Investment Income Tax payable for these own policies. Show all work and justify your answer. (c) (3 points) Assuming the following: ABC Life has no investment income in 2017 The Single Premium Deferred Annuity has a period of coverage of 25 years. (i) Construct the 2017 pre-tax statutory income statement for ABC Life. (ii) Determine the business income for tax purposes by adjusting the pre-tax statutory income