Medtech Inc. is a Canadian controlled private corporate. It uses a taxation year which ends on December 31. At the end of the 2018 taxation year, the Company had a balance in its Refundable Dividend Tax On Hand of $26,330. The dividend refund for 2018 was $8,885.

On December 31, 2018, Medtech had no balance in its GRIP.

During the taxation year ending December 31, 2019, Medtech had Taxable Income of $456,250. The Part I Tax Payable for the year was correctly calculated to be $82,506. Net Income For Tax Purposes does not include any foreign source income. No net capital losses were deducted in determining Taxable Income.

The Company’s Net Income For Tax Purposes includes the following amounts of non-operating income:

Capital Gains                                                                                   $87,460

Eligible Dividends From Canadian Public Companies               26,560

Net Rental Income From Residential Properties                          14,760

Dividends From Connected Company (See Note)                       77,700

Note These dividends, none of which were designated as eligible, were received from Medcare, another CCPC. Medtech owns 42 percent of this company’s voting shares. As a consequence of paying this dividend, Medcare received a dividend refund of $20,386.

Medtech is associated with four other companies. The annual business limit for the small business deduction is shared equally by Medtech and these companies. The $100,000 allocation is significantly less than the Company’s active business income for 2019.

Medtech Inc. paid taxable dividends of $66,560 during the year. It is the policy of the corporation to designate dividends as eligible only to the extent that a dividend refund will be available on their payment.

For 2018, Medtech and its associated companies had combined ADJUSTED Aggregate Investment Income of $32,400. Their Taxable Capital Employed In Canada totalled $2,300,000 for 2018.

Required:

A.    Determine the transitional balances for Medtech’s Eligible RDTOH and its Non-Eligible RDTOH.

B.    Determine the refundable portion of Medtech’s Part I Tax Payable for 2019.

C.    Determine Medtech’s Part IV Tax Payable for 2019.

D.    Determine the December 31, 2019 balances in Medtech’s Eligible RDTOH and its Non-Eligible RDTOH.

E.    Determine Medtech’s 2019 dividend refund, providing separate amounts for refunds on eligible dividends and refunds on non-eligible dividends.