Recording 496-840-616 56 o Flag for Re Davis invested in a tactical asset allocation fund in his non-registered investment account. Distributions from the mutual fund are paid directly to Davis and not reinvested. Assuming a federal marginal tax rate of 26%, dividend gross-up rate of 38% and federal dividend tax credit rate of 15%, which type of distribution would result in the lowest amount of tax payable? O Capital Dividend O Capital Gain O Eligible Dividend O Interest Recording 496-840-616 Chat Whiteboard 57 of 1 Flag for Revie Leira has a marginal tax rate of 45% and may deduct $5,000 in registered retirement savings plan (RRSP) contributions on her income tax return. If she decides to use her available deduction and assuming this does not reduce her taxable income to a lower tax bracket, by how much will it reduce her tax payable? ○ $5,000 ○ $4,500 $2,250 $0
Recording 496-840-616 56 o Flag for Re Davis invested in a tactical asset allocation fund in his non-registered investment account. Distributions from the mutual fund are paid directly to Davis and not reinvested. Assuming a federal marginal tax rate of 26%, dividend gross-up rate of 38% and federal dividend tax credit rate of 15%, which type of distribution would result in the lowest amount of tax payable? O Capital Dividend O Capital Gain O Eligible Dividend O Interest Recording 496-840-616 Chat Whiteboard 57 of 1 Flag for Revie Leira has a marginal tax rate of 45% and may deduct $5,000 in registered retirement savings plan (RRSP) contributions on her income tax return. If she decides to use her available deduction and assuming this does not reduce her taxable income to a lower tax bracket, by how much will it reduce her tax payable? ○ $5,000 ○ $4,500 $2,250 $0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Recording
496-840-616
56 o
Flag for Re
Davis invested in a tactical asset allocation fund in his non-registered investment account. Distributions from the mutual fund are paid
directly to Davis and not reinvested. Assuming a federal marginal tax rate of 26%, dividend gross-up rate of 38% and federal dividend
tax credit rate of 15%, which type of distribution would result in the lowest amount of tax payable?
O Capital Dividend
O Capital Gain
O Eligible Dividend
O Interest
Transcribed Image Text:Recording
496-840-616
Chat
Whiteboard
57 of 1
Flag for Revie
Leira has a marginal tax rate of 45% and may deduct $5,000 in registered retirement savings plan (RRSP) contributions on her income
tax return. If she decides to use her available deduction and assuming this does not reduce her taxable income to a lower tax bracket, by
how much will it reduce her tax payable?
○ $5,000
○ $4,500
$2,250
$0
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