You have just incorporated and started your business. Your corporate pre-tax profit is $40,000. This is your only source of income. This income is eligible for the Small Business Deduction and is subject to a 3% provincial tax rate. Using a 15% dividend gross-up rate, a federal dividend tax credit equal to 9/13 of the gross-up and a provincial dividend tax credit equal to 4/13 of the gross-up, determine whether you should receive the corporation's income through salary or dividends. Is there a mixture of salary and dividends that is even better? Hint: Try out an option where you pay $4,276 as salary and the remainder as dividends. Assume you have $2,800 of federal personal tax credits and $1,500 of provincial tax credits before considering dividends, all of which are non-refundable. You may use a 15% federal tax rate and a 10% provincial tax rate for your personal tax calculations.