SSS Problem Thirteen - 4 (Tax Payable With SBD, ART, GRR, And GRIP) Kinsmore Industries Ltd. is a Canadian controlled private corporation. It is not associated with any other corporation. The Company manufactures small tools and also handles some of its own retail distribution. As all profits are earned in a province that does not have a special tax rate for M&P activities, the Company does not bother with the ITR 5200 calculation of M&P profits that is required for the use of the M&P deduction. The following aggregate Income Statement has been prepared to assist you in completing Kinsmores tax return for the year ending December 31, 2019: Revenues From Operations $6,300,000 Expenses From Operations ( 5,640,000) Income From Operations $ 660,000 Canadian Source Interest Income 55,000 Eligible Dividends From Portfolio Investments 48,000 Income Before Taxes $ 763,000 All of the revenues of Kinsmore are earned in Canada and are taxable during 2019. The expenses are all deductible for tax purposes except for amortization expense of $1,250,000. Your calculations indicate that maximum capital cost allowance would be $1,350,000 and you intend to claim this amount. Other Information: 1. During 2019, a total of $97,000 in taxable dividends were paid to the shareholders of Kinsmore Industries. It is the policy of the company to maximize the designation of eligible dividends, without regard to the availability of a refund on their payment. 2. On December 31, 2018, the balance in the Refundable Dividend Tax On Hand account is nil. Dividends of $50,000 were paid in 2018. Kinsmore did not receive a refund as a result of paying these dividends. 3. At the end of 2018, Kinsmore has a GRIP of $42,500. During 2018, the company designated $31,300 of its dividends paid as eligible. 4. For 2018, Kinsmore had ADJUSTED Aggregate Investment Income of $23,000. Its Taxable Capital Employed In Canada was $1,600,000 for 2018. Required: Show all of the calculations used to provide the following required information, including those for which the result is nil. A. Calculate Kinsmores minimum Net Income For Tax Purposes and Taxable Income for the year ending December 31, 2019. B. Calculate Kinsmores minimum Part I Tax Payable for 2019. C. Calculate Kinsmore's refundable portion of Part I Tax Payable for 2019. D. Calculate Kinsmore's Part IV Tax Payable for 2019. E. Calculate Kinsmore's Eligible RDTOH and Non-Eligible RDTOH at December 31, 2019. F. Determine the December 31, 2019 balance in Kinsmores GRIP. G. Determine the amount of Kinsmore Industries Ltd.s dividend refund for 2019, showing separately the amounts related to eligible and non-eligible dividends. Canadian Tax Principles - Self Study And SSS Problems (2019/2020) C