s $17,000 non-el Canadian corpoi rate 41% (29% fec ederal and provir % of the gross-up deral and provin

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 48P
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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. $8,085
d. $4,930
Transcribed Image Text: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. $8,085 d. $4,930
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