During 2019, Mr

Accounting Dec 17, 2020

During 2019, Mr. Franz Schlitz receives $23,500 in eligible dividends from Canadian public corporations.  His income is such that this additional amount will be taxed at a 29 percent federal rate and a 14 percent provincial rate.  On eligible dividends, the province has a dividend tax credit equal to 25 percent of the gross up.  Determine the total federal and provincial tax that will be payable on these dividends and his after tax retention. (3 Marks)


PART B


Mr. Martin Pabst owns publicly traded shares which, during 2019, paid eligible dividends of $10,200.  His income is such that this additional amount will be taxed at a 33 percent federal rate and a 16 percent provincial rate.  The provincial tax credit on eligible dividends is equal to 29 percent of the gross up. Determine the total federal and provincial tax that will be payable on these dividends and his after tax retention. (3 Marks)

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