During the current year, S Ltd. has net taxable capital gains of $50,000, receives dividends from taxable Canadian corporations of $40,000, and earns interest income of $20,000. Taxable Income for the year equals $260,000, of which $200,000 is eligible for the small business deduction. The Company's additional refundable tax for the year is equal to:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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During the current year, S Ltd. has net taxable
capital gains of $50,000, receives dividends from
taxable Canadian corporations of $40,000, and
earns interest income of $20,000. Taxable Income
for the year equals $260,000, of which $200,000 is
eligible for the small business deduction. The
Company's additional refundable tax for the year is
equal to:
$6,402
$10,667
$ 7,040
$ 8,427
Transcribed Image Text:During the current year, S Ltd. has net taxable capital gains of $50,000, receives dividends from taxable Canadian corporations of $40,000, and earns interest income of $20,000. Taxable Income for the year equals $260,000, of which $200,000 is eligible for the small business deduction. The Company's additional refundable tax for the year is equal to: $6,402 $10,667 $ 7,040 $ 8,427
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