Irene received the following dividends in 2021: • an eligible dividend of $16,550 a non-eligible dividend of $12,450 a dividend of $21,975 from a foreign corporation, net of $3300 of foreign tax withheld • a stock dividend of 444 shares; the paid-up capital of the corporation was increased by $25 for each share issued, and the issuing company is a public company Irene has a combined federal and provincial tax rate of 45%. Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should identify the total cash received, the taxable amount, the taxes, any related dividend tax credits (if applicable), and total cash (after- tax). Use a chart to help organize your calculations.
Irene received the following dividends in 2021: • an eligible dividend of $16,550 a non-eligible dividend of $12,450 a dividend of $21,975 from a foreign corporation, net of $3300 of foreign tax withheld • a stock dividend of 444 shares; the paid-up capital of the corporation was increased by $25 for each share issued, and the issuing company is a public company Irene has a combined federal and provincial tax rate of 45%. Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should identify the total cash received, the taxable amount, the taxes, any related dividend tax credits (if applicable), and total cash (after- tax). Use a chart to help organize your calculations.
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:Irene received the following dividends in 2021:
• an eligible dividend of $16,550
•a non-eligible dividend of $12,450
•a dividend of $21,975 from a foreign corporation, net of
$3300 of foreign tax withheld
•a stock dividend of 444 shares; the paid-up capital of the
corporation was increased by $25 for each share issued,
and the issuing company is a public company
Irene has a combined federal and provincial tax rate of 45%.
Required:
Indicate total after-tax amount received by Irene in 2021.
For each investment you should identify the total cash
received, the taxable amount, the taxes, any related
dividend tax credits (if applicable), and total cash (after-
tax). Use a chart to help organize your calculations.
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Transcribed Image Text:Irene received the following dividends in 2021:
• an eligible dividend of $16,550
a non-eligible dividend of $12,450
a dividend of $21,975 from a foreign corporation, net of
$3300 of foreign tax withheld
• a stock dividend of 444 shares; the paid-up capital of the
corporation was increased by $25 for each share issued,
and the issuing company is a public company
Irene has a combined federal and provincial tax rate of 45%.
Required:
Indicate total after-tax amount received by Irene in 2021.
For each investment you should identify the total cash
received, the taxable amount, the taxes, any related
dividend tax credits (if applicable), and total cash (after-
tax). Use a chart to help organize your calculations.
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