Irene received the following dividends in 2021: • an eligible dividend of $16,550 a non-eligible dividend of $12,450 a dividend of $21,975 from a foreign corporation, net of $3300 of foreign tax withheld • a stock dividend of 444 shares; the paid-up capital of the corporation was increased by $25 for each share issued, and the issuing company is a public company Irene has a combined federal and provincial tax rate of 45%. Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should identify the total cash received, the taxable amount, the taxes, any related dividend tax credits (if applicable), and total cash (after- tax). Use a chart to help organize your calculations.

Irene received the following dividends in 2021: • an eligible dividend of $16,550 a non-eligible dividend of $12,450 a dividend of $21,975 from a foreign corporation, net of $3300 of foreign tax withheld • a stock dividend of 444 shares; the paid-up capital of the corporation was increased by $25 for each share issued, and the issuing company is a public company Irene has a combined federal and provincial tax rate of 45%. Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should identify the total cash received, the taxable amount, the taxes, any related dividend tax credits (if applicable), and total cash (after- tax). Use a chart to help organize your calculations.

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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Max is planning to invest in preferred shares of a friend's Canadian - controlled private corporation, which are paying a $19,000 dividend per year from income taxable at the low corporate rate. Assuming that Max is in the top federal tax bracket (33%) and that the provincial tax on income rate in his province is 15%, how much income tax will Max pay on this income? Also assume that the combined federal and provincial dividend tax credit is equal to the dividend gross - up.
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Max is planning to invest in preferred shares of a friend's Canadian-controlled private corporation, which are paying a $12,000 dividend per year from income taxable at the low corporate rate. Assuming that Max is in the top federal tax bracket (33%) and that the provincial tax on income rate in his province is 17%, how much income tax will Max pay on this dividend income? Assume that the combined federal and provincial dividend tax credit is equal to the dividend gross-up. A. 2,754 B. 5,100 C. 6,900 D. 6,000 QUESTION 7 Mr. J had the following sources of interest income in the current year. Mr. J follows the cash method of reporting his personal interest income and has correctly reported interest income for all prior years on all of his investments. Personal Savings account - interest received $515 Prior year income tax refund - interest received 185 1-year guaranteed investment certificate-interest accrued to December 31st 117 3-year guaranteed investment certificate - interest…
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