$11$:$544$

LTE

$60$

Back Discussion Problems$\_$Ch $7\_$with sol...

taxable income$)$

ACB after income distribution $=$$$7\mathrm{.}30$ per unit

Interest income is reinvested

New units received by Martin FMV $$6$ units

Total units owned by Martin $=1,00083\mathrm{.}33$ units $=1,083\mathrm{.}33$ units

ACB$=(1,000$$$7\mathrm{.}3)(83\mathrm{.}33$$$6)=$$$7,800$

ACB per unit $=$$$7,\frac{800}{1},083\mathrm{.}33$ units $=$$$7\mathrm{.}20$

$$500$ will be added to taxable income.

Problem $14($Comprehensive problem $-$ dividend and interest$)$

Baobei has some investments in some Canadian and international companies. In $2023,$ following are her income from the investments.

$\backslash$table$[[1,$Received cash dividend from Rimmell Inc., a Canadian owned public company.,$\backslash$table$[[$$$12,00],[0]]],[2,$Received cash dividend from $24567831$ Ontario Inc., a CCPC$.,\backslash$table$[[$$$50,00],[0]]],[3,$Received stock dividend from Sumer Inc., Canadian owned public company. Initially Baobei owned $30,000$ shares before the stock dividend declaration. Sumer Inc. declared a $25\%$ stock dividend. The fair market value of the stock is $$9\mathrm{.}75.,],[4,$Received cash dividend from Blackcherry Inc., a US company. The company deducted $$500$ as foreign tax.,$$5,000],[5,$Received cash interest from GIC investment RBC Bank.,$$1,200],[6,$Received interest from GIC investment in TD Bank. The interest amount has been reinvested by the bank.,$$1,500]]$

Baobei's marginal personal tax rate is $45\%.$ Following are the gross up and dividend tax credit rates.

$\backslash$table$[[$Gross up $-$ Eligible dividend,$38\%],[$Gross up $-$ Non$-$eligible dividend,$15\%],[$Dividend tax credits $($Eligible$),],[$Federal$,6/11],[$Provincial$,5/11],[$Dividend tax credits $($Noneligible$),],[$Federal$,9/13],[$Provincial$,4/13]]$

Required:

Calculate Baobei's taxable income and income tax payable.

$2$