Problem 17 ITA: 123 - 127; 129, 186 Multi Enterprises Ltd. is a Canadian-controlled private corporation whose fiscal period coincides with the calendar year. It owns 100% Single Enterprise Ltd. For the year 2019, the MEL's taxable income was calculated as follows: Income from distributing net of CCA . $220,000 Dividends from taxable corporations: a) connected corporation, dividend payment triggering a dividend refund from its non-eligible RDTOH of $2, 750 to the wholly owned subsidiary 11,000 b) non-connected corporation (portfolio dividends) (eligible) 20,000 Taxable capital gain (non-active) $29,000 Allowable capital losses . 12,000 17,000 Royalties. 50.000 Recapture of CCA on disposal of sales equipment . . ... 4,000 Income from rental of an apartment building (no full-time employees and tenants provide virtually all of their own services) 20,000 Interest charged on accounts receivable . . 5,000 Net income for tax purposes. $347,000 The following additional information are follows: 1. At December 31, 2018, there was a nil balance in both the eligible and non-eligible refundable dividend tax on hand accounts. The company paid $72,000 in non-eligible dividends during 2019 to individual shareholders. 2. SEL was allocated $150,000 business limit for the current year. For the previous year, MEL 's Adjusted Aggregate Investment Income was $48,000. Taxable Capital employed in Canada by MEL and its associated company was $11,000,000 for current year and $14,500,000 for previous year. 5. The tax attributes have been extracted from the books and records net capital losses carried over. $ 7,000 non-capital losses carried over . ... - . . 10,000 donations 26,000 dividends from taxable Canadian corporations 31,000 6. The company accountant analyzed the accounting records and provided the following tax related information: Manufacturing Capital (MC) 180,000 Manufacturing labour (ML) 150,000 Total Capital (TC) 450,000 Total Labour (TL) 300,000