Freddy receives $17,000 non-eligible dividend from a taxable Canadian corporation. His combined tax rate 41% (29% federal

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Question:

Freddy receives $17,000 non-eligible dividend from a taxable Canadian corporation. His combined tax rate 41% (29% federal and 12% provincial). If federal and provincial combined tax credit 84.5% of the gross-up amount, Freddy’s net federal and provincial tax payable is?

a. $5,713

b. $5,861

c. $8,085

d. $4,930