Multi Enterprises Ltd. is a Canadian-controlled private corporation whose fiscal period coincides with the calendar year. For the year 2012, the company's taxable income was calculated as follows:

At December 31, 2011, there was a nil balance in the refundable dividend tax on hand account. The company paid $72,000 in dividends during 2012 to individual shareholders.
It has been agreed that $200,000 of the business limit for small business deduction will be claimed by the parent, Multi Enterprises Ltd., leaving the remainder for the subsidiary.
The company has a permanent establishment in New Brunswick and in the United States. Its gross revenue, net of dividends and net of rentals, and its salaries and wages are attributed to its permanent establishments as follows:

In the United States a salesman worked out of his home in which he kept a small stock of merchandise from which he filled orders.
During the year the company made eligible child care space expenditures in the amount of $32,000 for use in its New Brunswick distributing facilities. Capital cost allowance for the year has been adjusted for these expenditures.
REQUIRED
(A) Compute the federal Part I tax and assumed provincial tax at a 5% rate on federal taxable income payable by the company for 2012. Show in detail the calculation of all deductions in the computation, using a separate schedule for each special deduction. In calculating the small business deduction list all ineligible items of income, if any, and indicate the amount of the business limit available for the subsidiary.
(B) Compute the refundable dividend tax on hand balance as at December 31, 2012, showing, in detail, your calculations and compute the dividend refund for 2012.

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Income from distributing net of CCA . Dividends from taxable corporations: .. . .. . . . . . . . . . . 191000 (a) connected corporation, dividend payment triggering a dividend refund of $2,750 to the wholly owned subsidiary . (b) non-connected corporation (portfolio dividends) . . . 20,000 $29,000 12,000 17,000 9,000 .. . . .. . . . . . . . .. 4,000 14,000 23,000 6,000 5,000 . . . . . .. . . . . . .. $300,000 Recapture of CCA on disposal of sales equipment Income from rental of an apartment building (no futime employees and . . tenants provide virtually all of their own services) . . Foreign non-business income i.e., interest income) (foreign tax credit of $3,450 equal to foreign tax withheld) . .. . Foreign business income (foreign tax credit of $1,800 equal to foreign tax paid).. Net income for tax purposes .. .. . . . Less: net capital losses carried over .. . . . . . . . . 7,000 10,000 26,000 donations . dividends from taxable Canadian corporations x 31,000 74,000 Gross revenue Salaries & wages 220,000 16,000 Totals . . $1,996,000 $254,000