Use the following information to answer questions 1-2 The Federal Tax Credit is 18.97%; the Provincial Tax
Question:
Use the following information to answer questions 1-2
The Federal Tax Credit is 18.97%; the Provincial Tax Credit is 6.7%; Dividends must first be grossed up by 45%.
1- An Ontario resident earned $1,545 in dividends in 2009. His regular income was $176,000 and the Ontario dividend tax credit is 6.7%. Calculate the following: the dollar amount of the federal tax payable on dividends, the dollar amount of the provincial tax payable on dividends, and the total tax rate on dividends.
(Please provide detailed calculations)
2- Calculate the total tax bill and effective tax rate for an Ontario resident whose
regular income was $140,000 in 2009. (Please provide detailed calculations)
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly