Edmonton corp. is Canadian Controlled Private Corp. It has Dec 31 year-end. The following information relates to its 2020 Taxation yTaxable income amount of $135,000Non-eligible dividend paid to shareholders during the year of 2020, amount of $40,000;Dividend refund for 2019 amount of $23,700 (from non-eligible)Non-eligible dividend received from Canadian corporations $30,000Non-eligible Refundable Dividend Tax on Hand balance at Dec 31, 2019 balance of $3,920Aggregate Investment Income amount of $27,000Amount eligible for small business deduction $105,000 (tax reduction SBD 19,950)Part I tax payable $56,000Based on the above, what is the balance of non-eligible Refundable Dividend Tax On Hand (RDTOH) at Dec 31, 20207

Given: In the case of Edmonton Corp., the Aggregate Investment Income for the year 2020 is given…

efund for 2019 amount of $23,700 (from non-eligible) le dividend received from Canadian corporations $30,000 le Refundable Dividend Tax on Hand balance at Dec 31, 2019 balance of Investment Income amount of $27,000 igible for small business deduction $105,000 (tax reduction SBD 19,950) able 156 000

efund for 2019 amount of $23,700 (from non-eligible) le dividend received from Canadian corporations $30,000 le Refundable Dividend Tax on Hand balance at Dec 31, 2019 balance of Investment Income amount of $27,000 igible for small business deduction $105,000 (tax reduction SBD 19,950) able 156 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Edmonton corp. is Canadian Controlled Private Corp. It has Dec 31 year-end. The following information relates to its 2020 Taxation y
Taxable income amount of $135,000
Non-eligible dividend paid to shareholders during the year of 2020, amount of $40,000;
Dividend refund for 2019 amount of $23,700 (from non-eligible)
Non-eligible dividend received from Canadian corporations $30,000
Non-eligible Refundable Dividend Tax on Hand balance at Dec 31, 2019 balance of $3,920
Aggregate Investment Income amount of $27,000
Amount eligible for small business deduction $105,000 (tax reduction SBD 19,950)
Part I tax payable $56,000
Based on the above, what is the balance of non-eligible Refundable Dividend Tax On Hand (RDTOH) at Dec 31, 20207

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