With respect to Generat Rate Income Pool (GRIP) and Low Rate Income Pool (LRIP) balances, which of the following statements is NOT corect? OA. A Canadian Controlled Private Corporation's General Rate Income Pool account is increaqed by 72 percent of the company's Taxable income. OB. ACanadan Controlled Private Corporation's General Rate Income Pool account is increased by the amount of eligibie dividends received during the current year OC. ACanadian Controlled Private Corporation's General Rate Income Pool account is reduced by the amount of eligble dividends designated in the preceding taxation year OD. A public company's Low Rate Iricome Pool account is increased by the amount of non-eligible dividends recelved

With respect to Generat Rate Income Pool (GRIP) and Low Rate Income Pool (LRIP) balances, which of the following statements is NOT corect? OA. A Canadian Controlled Private Corporation's General Rate Income Pool account is increaqed by 72 percent of the company's Taxable income. OB. ACanadan Controlled Private Corporation's General Rate Income Pool account is increased by the amount of eligibie dividends received during the current year OC. ACanadian Controlled Private Corporation's General Rate Income Pool account is reduced by the amount of eligble dividends designated in the preceding taxation year OD. A public company's Low Rate Iricome Pool account is increased by the amount of non-eligible dividends recelved

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 10MC

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Which of the following is true concerning dividends? a. Foreign dividends are included in income at their pre-withholding-tax amounts for tax purposes. b. Dividends received from a CCPC's business income that is not subject to the small business deduction are typically grossed-up to include 115% of the dividend. c. Dividends received a CCPC's business income that is subject to the small business deduction are typically grossed-up to include 138% of the dividend. d. Eligible dividends require a 115% gross up.
(Use the PFRS for SMEs) An entity operates in a jurisdiction where income taxes are payable at a lower rate on undistributed profits (20 per cent) with an additional amount (10 per cent) being payable when profits are distributed (i.e., the tax rate on distributed profits is 30 per cent). On 31 December 20X1 the entity expects to propose dividends in March 20X2 of approximately ₱20,000 for the year ended 20X1. The financial statements will be authorized for issue in April 20X2. Taxable profit for 20X1 is ₱100,000. The entity has temporary differences that are expected to increase taxable profit in the future for the year 20X1 of ₱30,000. The entity was formed on 1 January 20X1. On 31 December 20X1 the entity should recognize the following: A current tax liability (and expense) of ₱20,000 and a deferred tax liability (and expense) of ₱6,000. A current tax liability (and expense) of ₱20,000 and a deferred tax liability (and expense) of ₱9,000. A current tax liability (and expense) of…
For the current year, 2022, net income for tax purposes is $264,600. Included in this amount is the following: Income from an active business carried on in Canada Taxable capital gain Eligible dividends from Canadian public companies Canadian bond interest The following is a summary of other information for Wrap Ltd. for the 2022 year: Taxable income Capital dividend paid Eligible dividend paid Non-eligible dividend paid Small business deduction Total Federal Part I tax payable $200,200 6,200 18,000 40,200 $236,200 12,200 10,200 75,200 38,038 32,120 Required: Determine the dividend refund for 2022. Would the dividend refund change if Wrap Ltd. was not a CCPC but instead was a private corporation or a public corporation? (Use 0.3067 when multiplying to represent 30% %. and 0.3833 when multiplying to represent 38 1/3%. Do not multiply by more than 4 decimal places and round your final answer to the nearest dollar. Enter subtractions as negative amounts.)
In computing the quarterly income tax payable of a domestic or resident foreign corporation, the following may be credited against the minimum corporate income tax (“MCIT”), except: a) Excess withholding taxes of prior year b)Taxes paid in previous quarterly ITRs during the year c) Creditable taxes withheld during the quarter d) Excess MCIT of previous years
With respect to GRIP and LRIP balances, which of the following statements is NOT correct? A CCPC'S GRIP account is increased by 72% percent of the company's taxable income. A CCPC'S GRIP account is reduced by the amount of eligible dividends designated in the preceding taxation year. A CCPC'S GRIP account is increased by the amount of eligible dividends received during the current year. A public company's LRIP account is increased by the amount of non-eligble dividends received.
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Which of the following is true? A resident and non-resident foreign corporation shall be subject to 15% capital gains tax on its income derived from sale of domestic stocks not traded through the stock exchange. Effective January 1, 2021 the regular corporate income tax rate shall be 25%. The regular corporate income tax rate shall be based on gross income from business or operations. All of the above
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8. This dividend is subject to normal income tax a. Dividend received by a domestic corporation from another domestic corporation. b. Dividend received by a resident foreign corporation from a domestic corporation. 'C: Dividend received-by a domestic corporation from a resident foreign corporation: d. Dividend received by resident citizen from a domestic corporation. CS Scanned with CamScanner