Please Solve In 20mins Freddy receives $17,000 non-eligible dividend from a taxable Canadian corporation. His combinedtax rate 41% (29% federal and 12% provincial). If federal and provincial combined tax credit 84.5% ofthe gross-up amount, Freddy's net federal and provincial tax payable is?a. $5,713b. $5,861C. S8,085d. $4,930

Given as, Non eligible dividend= $17,000.

Answered: xab le Canadian corporation ). If…

Business

Accounting

xab le Canadian corporation ). If federal and provincial combined ta nd provincial tax payable is?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 30P

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

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Please Solve In 20mins

Freddy receives $17,000 non-eligible dividend from a taxable Canadian corporation. His combined
tax rate 41% (29% federal and 12% provincial). If federal and provincial combined tax credit 84.5% of
the gross-up amount, Freddy's net federal and provincial tax payable is?
a. $5,713
b. $5,861
C. S8,085
d. $4,930

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