Irene owns 100% of the shares of FitCo Inc., a manufacturer of at-home exercise equipment in Toronto,

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Question:

Irene owns 100% of the shares of FitCo Inc., a manufacturer of at-home exercise equipment in Toronto, Ontario. The bookkeeper has already calculated the net income for tax purposes (Div B) for the year ended December 31, 2022, as $980,000. They have asked you to calculate the taxes payable.

The following items were already included in net income for tax purposes (Div B):

Taxable capital gain $23,500
Non-eligible dividends from Canadian corporations $48,000 (see note 1 & 2)
Interest income on a Canadian bond $21,500

You have also compiled the following additional information:

FitCo made $10,000 in charitable donations.
FitCo did not claim any non-capital loss or net-capital loss carryovers in the year.
RestCo is a wholly owned subsidiary of FitCo. For the year ended December 31, 2022, RestCo earned $120,000 of ABI and will claim the maximum SBD that is available.

Note 1 - the non-eligible dividends from Canadian corporates of $48,000 noted above are from two taxable Canadian corporations:

	Ownership % by FitCo	Taxable dividend
ABC Ltd.	8%	$18,000
XYZ Ltd.	21%	$30,000

Note 2 - ABC Ltd. received a dividend refund of $15,000 and XYZ Ltd. received a dividend refund of $35,000.

Some additional information:

FitCo and RestCo's combined taxable capital is $8M for the preceding year.
The provincial tax rate is 3% on ABI below the business limit and 12% on high-rate income.
FitCo paid $11,000 of non-eligible dividends to the current shareholders in 2022.
The balance in NERDTOH on December 31, 2021, was $7,500 and ERDTOH was $0.
FitCo made a total of $25,000 in instalments in the current year.

REQUIRED: