Anne received the following dividend income during the current year: $1,000 of eligible dividends from taxable

Question:

Anne received the following dividend income during the current year:

• $1,000 of eligible dividends from taxable Canadian corporations

• $1,000 of non-eligible dividends from taxable Canadian corporations

• $1,000 of foreign dividends. The foreign country withheld $150 in foreign tax and Anne received the net amount of $850.

Determine the amount of dividend income to be included in Anne’s property income for the current year. Income tax reference: ITA 12(1)(j), (k), 82(1).

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...