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Required: Determine Cinder's federal income tax for the 2023 taxation year. (Use 0.3067 when multiplying to represent 302/3%. and 0.3833 when multiplying to represent 381/3%. Do not multiply by more than 4 decimal places and round your final answer to the nearest dollar. Enter subtractions as negative amounts.) Part IV Tax 381/3%x %x \begin{tabular}{l} Eligible RDTOH \\ \hline Dividend refund for preceding year \\ \hline Part IV tax on eligible dividends \\ \hline \end{tabular} Dividend Refund (i) Lessor of: (a) 381/3% (b) \begin{tabular}{|l|l|} \hline Eligible dividends paid \\ \hline Eligible RDTOH balance \\ \hline \end{tabular} Plus (ii) Lessor of: (a) (b) Non-eligible RDTOH balance \begin{tabular}{ll} \hline$ & 0 \\ \hline \hline \end{tabular} Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2023: 1. Net income for tax purposes is $215,000. The following are included in this amount. 2. PQ Ltd. is a Canadian-controlled private corporation. Cinder owns 60% of its common voting shares. In 2023 , PQ claimed the small business deduction on $352,000 of its active business income. PQ paid a non-eligible dividend of $12,000, of which Cinder's share is $8,000 (60\%). As a result of the dividend, PQ received a dividend refund of $3,000 from its non-eligible RDTOH. 3. Cinder made contributions of $6,000 to registered charities. This amount has been correctly adjusted for in computing net income for tax purposes. 4. The following information is from the 2022 Tax return of Cinder. 5. On May 31, 2023, Cinder paid taxable dividends of $24,000 (eligible $12,000 and non-eligible $12,000 ) to its shareholders. Aggregate investment income \begin{tabular}{|c|c|c|} \hline Taxable capital gain & $ & 17,000 \\ \hline Interest income from bonds & & 13,000 \\ \hline & $ & 30,000 \\ \hline \end{tabular} Part I tax Basic federal tax - 38\% of taxable income Abatement - 10% of taxable income Small business deduction - 19%x least of \begin{tabular}{|c|c|c|} \hline (i) Active business income & $ & 352,000 \\ \hline (ii) Taxable income & & 233,100 \\ \hline (iii) Business limit & & 148,000 \\ \hline \end{tabular} 148,000 \begin{tabular}{|rr|} \hline$ & 88,578 \\ \hline \hline & 23,310 \\ \hline$ & 111,888 \\ \hline \end{tabular} Refundable tax on investment income 102/3% times the least of: \begin{tabular}{|l|r|} \hline Aggregate investment income & $32,000 \\ \hline \hline Taxable income - income subject to SBD & 166,700 \\ \hline \end{tabular} \( 32,000 \lcm{3,306} \) Less: Less: General tax reduction - 13% of Taxable income Aggregate investment income PART I TAX Required: Determine Cinder's federal income tax for the 2023 taxation year. (Use 0.3067 when multiplying to represent 302/3%. and 0.3833 when multiplying to represent 381/3%. Do not multiply by more than 4 decimal places and round your final answer to the nearest dollar. Enter subtractions as negative amounts.) Part IV Tax 381/3%x %x \begin{tabular}{l} Eligible RDTOH \\ \hline Dividend refund for preceding year \\ \hline Part IV tax on eligible dividends \\ \hline \end{tabular} Dividend Refund (i) Lessor of: (a) 381/3% (b) \begin{tabular}{|l|l|} \hline Eligible dividends paid \\ \hline Eligible RDTOH balance \\ \hline \end{tabular} Plus (ii) Lessor of: (a) (b) Non-eligible RDTOH balance \begin{tabular}{ll} \hline$ & 0 \\ \hline \hline \end{tabular} Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2023: 1. Net income for tax purposes is $215,000. The following are included in this amount. 2. PQ Ltd. is a Canadian-controlled private corporation. Cinder owns 60% of its common voting shares. In 2023 , PQ claimed the small business deduction on $352,000 of its active business income. PQ paid a non-eligible dividend of $12,000, of which Cinder's share is $8,000 (60\%). As a result of the dividend, PQ received a dividend refund of $3,000 from its non-eligible RDTOH. 3. Cinder made contributions of $6,000 to registered charities. This amount has been correctly adjusted for in computing net income for tax purposes. 4. The following information is from the 2022 Tax return of Cinder. 5. On May 31, 2023, Cinder paid taxable dividends of $24,000 (eligible $12,000 and non-eligible $12,000 ) to its shareholders. Aggregate investment income \begin{tabular}{|c|c|c|} \hline Taxable capital gain & $ & 17,000 \\ \hline Interest income from bonds & & 13,000 \\ \hline & $ & 30,000 \\ \hline \end{tabular} Part I tax Basic federal tax - 38\% of taxable income Abatement - 10% of taxable income Small business deduction - 19%x least of \begin{tabular}{|c|c|c|} \hline (i) Active business income & $ & 352,000 \\ \hline (ii) Taxable income & & 233,100 \\ \hline (iii) Business limit & & 148,000 \\ \hline \end{tabular} 148,000 \begin{tabular}{|rr|} \hline$ & 88,578 \\ \hline \hline & 23,310 \\ \hline$ & 111,888 \\ \hline \end{tabular} Refundable tax on investment income 102/3% times the least of: \begin{tabular}{|l|r|} \hline Aggregate investment income & $32,000 \\ \hline \hline Taxable income - income subject to SBD & 166,700 \\ \hline \end{tabular} \( 32,000 \lcm{3,306} \) Less: Less: General tax reduction - 13% of Taxable income Aggregate investment income PART I TAX

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