Bailey Chance has a successful career in the finance field. In her spare time, she has built up a portfolio of investments that pays out dividends on a regular basis. In the 2020 taxation year, Bailey receives the following dividends:

Non-eligible Dividends from CCPC shares	$10,000
Eligible Dividends from Taxable Canadian Corporations	14,000
Dividends on Foreign Shares (net of 15% withholding tax) (Note)	13,175
Total Dividends Received	$37,200

Note: This means 15% foreign withholding tax was already deducted.

In this question, do not worry about adding a negative sign in your inputs.

Required:

A. Determine the amount that Bailey would include for these dividends under section 3(a) of the calculation for Net Income for Tax Puporses.

Taxable Non-Eligible Dividends	$
Taxable Eligible Dividends
Taxable Foreign Dividends
Total Taxable Dividends

B. Indicate the federal tax credits that Bailey would receive for each of the different types of dividends:

Federal Dividend Tax Credit on Non-Eligible Dividends
Federal Dividend Tax Credit on Eligible Dividends
Federal Tax Credit on Foreign Dividends

Answer rating: 100% (QA)

A The amount of dividends under section 3b for Net Income for Tax Purposes Bailey should include are ... View the full answer