Wrap Ltd. is a Canadian-controlled private corporation. At the end of 20X5, Wrap had the following tax account balances:
• Non-capital losses………………………………… $ 8,000
• Net capital losses (incurred in 20X3) ……………… 2,000
• RDTOH……………………………………………… 7,000
• Dividend Refund …………………………………1,000
• CDA ……………………………………………….12,000
For the current year, 20X6, net income for tax purposes is $261,000. Included in this amount is the following:
• Income from an active business carried on in Canada….. $200,000
• Taxable capital gain …………………………………6,000
• Dividends from Canadian public companies………… 15,000
• Canadian bond interest …………………………………30,000
• Foreign bond interest …………………………………10,000
The following is a summary of other information for Wrap Ltd. for the 20X6 year:
• Taxable income………………………………… $236,000
• Capital dividend paid ………………………………12,000
• Taxable dividend paid ……………………………75,000
• Small Business Deduction……………………………34,000
• Foreign tax credit—non business income……………1,000
• Total Federal Part I tax payable ……………………33,480
Required:
Determine the dividend refund for 20X6.Would the dividend refund change if Wrap Ltd. was not a CCPC but instead was a Private corporation or a Public corporation?