The Cupcakerie Co. (CC) has the following for 20x5: Taxable income Aggregate investment income Dividend income...

 

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The Cupcakerie Co. (CC) has the following for 20x5: Taxable income Aggregate investment income Dividend income Portfolio dividends (eligible) Dividends from Beautiful Bagels Inc. (non-eligible) Amount eligible for the small business deduction Ordinary Part I tax Additional refundable tax Opening eligible RDTOH account Opening non-eligible RDTOH account Prior year dividend refund - eligible Prior year dividend refund - non-eligible Current year eligible dividend paid Current year non-eligible dividend paid $450,000 60,000 a) Calculate CC's Part IV tax. b) Calculate the ending balance in CC's RDTOH accounts. 8,000 25,000 275,000 58,800 6,400 5,000 36,000 0 15,000 30,000 50,000 CC owns 90% of Beautiful Bagels. Upon paying this year's dividend, Beautiful Bagels enjoyed a dividend refund of $6,000. The Cupcakerie Co. (CC) has the following for 20x5: Taxable income Aggregate investment income Dividend income Portfolio dividends (eligible) Dividends from Beautiful Bagels Inc. (non-eligible) Amount eligible for the small business deduction Ordinary Part I tax Additional refundable tax Opening eligible RDTOH account Opening non-eligible RDTOH account Prior year dividend refund - eligible Prior year dividend refund - non-eligible Current year eligible dividend paid Current year non-eligible dividend paid $450,000 60,000 a) Calculate CC's Part IV tax. b) Calculate the ending balance in CC's RDTOH accounts. 8,000 25,000 275,000 58,800 6,400 5,000 36,000 0 15,000 30,000 50,000 CC owns 90% of Beautiful Bagels. Upon paying this year's dividend, Beautiful Bagels enjoyed a dividend refund of $6,000.

Answer rating: 100% (QA)

a Part IV tax Dividends from Beautiful Bagels Inc 90 3833 250... View the full answer