Serenity Holdings Ltd. (Serenity) is a Canadian-controlled private corporation (CCPC). Serenity received $40,000 of eligible dividends from its investments in publicly traded Canadian shares during its fiscal year ended June 30, 2021. Serenity has loss carryforward balances available for application as follows: non-capital losses of $8,000, net capital losses of $10,000, and farm losses of $4,000. Serenity is unsure of whether it will be able to pay dividends in the future to recover refundable taxes and therefore wishes to minimize Part IV Tax. 

Assuming Serenity has no other income, what is Serenity's minimum 2021 Part IV Tax payable?

1.  6,900
2. 15,333
3. 12,267
4. 10,733
5. None of the above

Answer rating: 100% (QA)

ANSWER E None of the above The refundable part IV tax is calculated as follows ITA 1861 Dividends Re... View the full answer