Bailey Chance has a successful career in the finance field. In her spare time, she...
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Finance
Bailey Chance has a successful career in the finance field. In her spare time, she has built up a portfolio of investments that pays out dividends on a regular basis. In the 2020 taxation year, Bailey receives the following dividends:
Non-eligible Dividends from CCPC shares
$10,000
Eligible Dividends from Taxable Canadian Corporations
14,000
Dividends on Foreign Shares (net of 15% withholding tax) (Note)
13,175
Total Dividends Received
$37,200
Note: This means 15% foreign withholding tax was already deducted.
In this question, do not worry about adding a negative sign in your inputs.
Required:
A. Determine the amount that Bailey would include for these dividends under section 3(a) of the calculation for Net Income for Tax Puporses.
Taxable Non-Eligible Dividends
$
Taxable Eligible Dividends
Taxable Foreign Dividends
Total Taxable Dividends
B. Indicate the federal tax credits that Bailey would receive for each of the different types of dividends:
Federal Dividend Tax Credit on Non-Eligible Dividends
Federal Dividend Tax Credit on Eligible Dividends
Federal Tax Credit on Foreign Dividends
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