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UIL, a CCPC, has a 60% owned subsidiary UXL. In 2021 UXL, also a CCPC,...

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Accounting

UIL, a CCPC, has a 60% owned subsidiary UXL. In 2021 UXL, also a CCPC, was allocated $295,000 of the annual business limit and paid a non-eligible dividend that produced a $50,000 Part IV refund. UXL earned $60,000 in aggregate investment income during 2022.

In 2021 UIL paid a dividend of $54,780, received a $21,000 Part IV refund and RDTOH balance at year-end of $30,000. During 2022 the results from UILs operations are as follows:

Active business income $ 250,000

Interest income $ 20,000

Dividends from portfolio investments $ 30,000

Dividends received from UXL $ 80,000

Capital gains $ 20,000

UIL and UXL combined TCEC is below $10 million.

Required:

Calculate:

  • Part I Tax
  • Part IV Tax
  • RDTOH Balance
  • Dividend required to empty the RDTOH pool

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