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.)
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.)
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 32P
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Question
Transcribed Image Text: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.)
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