Problem
You are working with company XYZ for 2021. You have been given the following information.
Total dividends received by XYZ in 2021:
$59,000 received from 123 LTD., a company XYZ has 8% ownership in.
123 LTD received a dividend refund of $19,000 from its eligible RDTOH in 2021.
$49,000 received from 456 corp. a company XYZ has 30% ownership in.
456 corp. received a dividend refund of $17,8000 from its non-eligible RDTOH in 2021.
The other accountant has already prepared some preliminary calculations which you may also find helpful to complete the work below.
Aggregate investment income = $88,000
Taxable Income: $667,000
Amount eligible for SBD = $500,000
Part 1 taxes= $52,000
Task
1) Calculate the Part IV taxes payable.
2) Calculate the refundable portion of Part 1 tax.