Lark Inc., a CCPC, had no GRIP balance at its year end on December 31, 2018. During 2019, the company received eligible dividends of $41000 and designated all of its 23000 in dividends paid as eligible. At the end of 2019, Lark has a GRIP of $41000. For 2020, Lark has Taxable Income of $955000. This amount includes net taxable capital gains of $60000, passive net rental income of $23000, and a net capital loss carry forward deduction of $11000. In addition, the company receives eligible dividends during the year of $79000. In determining 2020 tax payable, the company has a small business deduction of 42700. During 2020, Lark pays dividends of $83000, with $43000 of this amount being designated as eligible.

Required:

Determine the company's GRIP balance at the end of 2020

Answer rating: 100% (QA)

Calculating Lark Incs GRIP Balance at the End of 2020 Heres how to determine Lark Incs GRIP balance ... View the full answer