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Brianne is at the federal marginal tax rate (MTR) of 26% for income tax purposes...

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Brianne is at the federal marginal tax rate (MTR) of 26% for income tax purposes. All of her investments are held in her non-registered discount brokerage account. The only tax credit remaining available to Brianne is the eligible dividend tax credit.

Earnings

Amount

Note

Dividends

$800

From

three companies for which she received additional company shares because of

her dividend re-investment plan (DRIP). The three companies operate only in

Canada and pay taxes at regular rates.

Dividends

$250

CDN

Canadian

owned company with its sole operations in California on which no foreign

taxes were paid.

Canadian

Western Bank Common shares sold

$25,500

total sales proceeds

The

adjusted cost base (ACB) is $22,000

Given

the gross-up and dividend tax credit rates provided below, the best estimate of

the federal income tax expense, based on the above earnings in a single year,

is closest to: 

Eligible dividend gross up by 38% with dividend tax credit of 15.0198%

0%
0%
0%
0%
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