2008 Fall Midterm1-solutions-3.0

2008 Fall Midterm1-solutions-3.0 - 1a corp tax rate 0.34...

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Unformatted text preview: 1a corp tax rate 0.34 fed tax rate for x 0.15 income 20,000 prov tax rate for x 0.07 gross-up rate 0.45 fed tax rate for y 0.29 fed dtc rate 0.611111 prov tax rate for y 0.14 prov dtc rate 0.3 direct receipt of income x y mark taxable income 20,000 20,000 2 total individual tax payable at 0.22-4400 1 at 0.43-8600 1 15,600 11,400 incorporation of income x y corp taxable income 20,000 20,000 2 corp tax at 0.34-6800-6800 2 available for dividends 13,200 13,200 dividends received 13,200 13,200 2 gross up at 0.45 5940 5940 2 19,140 19,140 indivdual fed tax at 0.22 4210.8 1 at 0.43 8230.2 1 dtc fed-3630-3630 2 prov-1782-1782 2 nil 2818.2 dividends received 13,200 13,200 total tax payable nil-2818.2 after tax retention-use of corporations 13,200 10,382 2 20 1b corp tax rate 0.34 fed tax rate for x 0.15 income 20,000 prov tax rate for x 0.07 gross-up rate 0.25 fed tax rate for y 0.29 fed dtc rate 0.666667 prov tax rate for y 0.14 prov dtc rate 0.3 direct receipt of income x y mark taxable income 20,000 20,000 total individual tax payable at 0.22-4400 at 0.43-8600 15,600 11,400 incorporation of income x y corp taxable income 20,000 20,000 corp tax at 0.34-6800...
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This note was uploaded on 10/19/2011 for the course TAX 3520 taught by Professor Tong during the Spring '11 term at York University.

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2008 Fall Midterm1-solutions-3.0 - 1a corp tax rate 0.34...

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