Which group consists entirely of amounts that are generally included in a corporation’s Aggregate Investment Income (AII)?

Prairie Financial Ltd., a Canadian-controlled private corporation, reports the following information for the current taxation year:Opening balancesAccountBalanceNERDTOH$10,000ERDTOH$8,000Current-year additionsAccountAdditionNERDTOH$16,000ERDTOH$5,000During the year, Prairie Financial paid:$42,000 of non-eligible dividends$24,000 of eligible dividendsFederal corporate tax payable before considering the dividend refund is $70,000.Assume the dividend refund rate is 38⅓%.What are Prairie Financial Ltd.’s dividend refund, closing RDTOH balances and net federal corporate tax payable?

Jordan received an eligible dividend of $40,000 from a taxable Canadian corporation during the year.Use the following rates:Eligible dividend gross-up: 38%Federal dividend tax credit: 15.02% of the grossed-up dividendWhat amounts will Jordan report as taxable dividend income and claim as the federal dividend tax credit?

Summit Capital Ltd., a Canadian-controlled private corporation, reports the following information for the current taxation year:Income sourceAmountActive business income$360,000Interest income$45,000Rental income$15,000Taxable capital gain$15,000Non-eligible portfolio dividends$30,000Summit Capital also received a $25,000 eligible dividend from a connected corporation. The connected corporation:paid total eligible dividends of $100,000; andreceived an ERDTOH dividend refund of $12,000 as a result of paying those dividends.Assume:The full AII amount is subject to both components of refundable Part I tax.Refundable portion of regular Part I tax: 20%Additional Refundable Tax: 10⅔%Part IV tax rate on dividends received from a non-connected corporation: 38⅓%What are Summit Capital Ltd.’s current-year additions to NERDTOH and ERDTOH?

Prairie Holdings Ltd. owns 40% of the voting shares and 40% of the value of Mountain Manufacturing Ltd. The corporations are connected for Part IV tax purposes.During the current taxation year:Mountain Manufacturing paid $100,000 of eligible dividends to all shareholders.Prairie Holdings received $40,000 of those dividends.Mountain Manufacturing received an $18,000 dividend refund from ERDTOH as a result of paying the dividends.What is Prairie Holdings Ltd.’s Part IV tax, and which refundable tax account is increased?

Prairie Investment Services Ltd., a Canadian-controlled private corporation, reports the following income for the current taxation year:Income sourceAmountActive business income$400,000Interest income$42,000Rental income$18,000Taxable capital gain$25,000Portfolio dividends from taxable Canadian corporations$30,000What is Prairie Investment Services Ltd.’s Aggregate Investment Income (AII)?

Aurora Technology Ltd. is a Canadian-controlled private corporation. Its associated corporate group earned adjusted aggregate investment income of $82,000 in the preceding taxation year.Assume there is no reduction arising from taxable capital employed in Canada.What is Aurora Technology Ltd.’s available business limit for the current year?

Summit Investments Ltd., a Canadian-controlled private corporation, has Aggregate Investment Income of $75,000 for the current taxation year.Assume the full $75,000 is subject to both components of refundable Part I tax:Refundable portion of regular Part I tax: 20%Additional Refundable Tax: 10⅔%What amount is added to Summit Investments Ltd.’s NERDTOH from refundable Part I tax?

Redwood Manufacturing Ltd. is a corporation resident in Canada. It reports $600,000 of taxable active business income, all of which:was earned in a Canadian province or territory;is eligible for general-rate treatment; anddoes not qualify for the Small Business Deduction.Assume there are no tax credits or other special taxes.Calculate Redwood Manufacturing Ltd.’s federal Part I tax payable before tax credits.Use the following rates:Basic federal tax: 38%Federal abatement: 10%General Rate Reduction: 13%

While preparing the corporate income tax return for Summit Industrial Ltd., a junior accountant is unsure of the correct order of the major calculation stages.Which sequence is correct?