834 Chapter 15 Assignment Problems these funds in a debt instrument that pays annual interest at 3.75 percent For the year ending December 31, 2015. Because of income generated by her unincorporated business. she is in the maximum federal tax bracket of 29 percent. Her province uses the same income brackets as found in federal iegislation. This means that any additional income that Karen receives will be taxed at a provincial rate of14 percent. Other information related to provincial taxation is as follows: Corporate Tax Rates The provincial corporate tax rate on investment income is 13 percent. Dividend Tax Credits The provincial dividend tax credit is equal to 40 percent on eligible dividends and 25 percent on non-eligible dividends. As her unincorporated business has required all of her available funds for expansion, Karen has no investments other than the new investment in debt securities. Required: Prepare caiculations that will compare the after tax retention of income thatwill accrue to Karen for 2015 if: A. The investment is owned by her as an individual. B. The investment is owned by a CCPC in which she is the sole shareholder, and which pays out all available income in dividends