Dawn, a client of yours, generally has employment income from her company and some investment income. In early 2012, you arranged Dawn's affairs such that she would crystallize her $500,000 capital gains exemption on qualified small business corporation shares. For 2012, her income is estimated as follows:
Employment income (CPP $1,931) ....................................................... $42500
Interest .......................................................................................... 12800
Dividends from Canadian-resident public corporations .................................. 20000
Gross-up @ 38% ................................................................................. 7600
Taxable capital gains ......................................................................... 250000
Interest expense .............................................................................. (10000)
RRSP contribution ........................................................................... (14500)
Capital gains deduction .................................................................... (250000)
Taxable income ............................................................................... $58400
REQUIRED
Calculate what effect, if any, minimum tax will have on Dawn's 2012 federal tax payable.