Assignment 5

Problem 8 Income under division B 186250 Non capital losses 40000 Net capital loss 52000 Taxable capital gain 37500 Interest income 45000 Taxable profolio dividend 18750 Taxable dividend 112500 Part 1 tax 94250 24505 Provincial tax 7540 b RDTOH 16965 Dividend refund 38% 6446.7 Problem 13 Adjustments 1 Taxable capital gain 9000 Less Capital loss 10000 Capital loss 1000 2 Donation to charity 60000 Less Donation from previous year 10000 Total 50000 Part 1 taxable income Division A Business income 159000 Capital 8000000 Less: Capital loss -1000 8158000 Division B Investment income Rental income 115000 Interest income 15000 Royalty icnome 1000

Dividend 8000 139000 Less Deductions Donations 50000 SBD 50000 Total income 100000 8197000 38% 3114860 10% 819700 Business income 6360 Other income 16680 Problem 15 A Federal part 1 Tax Income from distributing CCA 220000 Non eligible RDTOH 2750 Whole owned 11000 Non connected corporation 20000 Taxable capital gain 29000 Allowable capital loss 17000 Royalities 9000 CCA recature 4000 Rental income 14000 Interest charged 5000 Net income for tax purposes 300000 Less Net capital loss 7000 Non capital loss 10000 Donation 26000 Dividend 31000 Taxable income 226000 SBD Income from CCA 220000 Royalities 9000

Income from rental 14000 Total eligible income 243000 Business limit for the year 500000 SBD 36450 Total income 226000 Taxable income after SBD 189550 Federal part 1 tax 15% 28432.5 4% 7582 36014.5 b RDTOH for 2021 0 ADD Dividend 20000 Less Dividend refund 2750 Eligible RDTOH 17250 Non eligible RDTOH for 2021 0 Add Dividend 11000 Non eligible 11000 Dividend refund Taxable dividend paid 72000 Eligible RDTOH 17250 Non eligible 11000 0.24 2635