James held 2% of the outstanding shares of a Canadian public corporation. The corporation issued an eligible stock dividend in 2016 and capitalized $800,000 of its retained earnings. By how much will James' Taxable Income increase as a result of the dividend?
The taxable income will... View the full answer
- unfortunately this is a wrong answer
- Aug 07, 2018 at 12:51pm
- The dividend is distributed on the basis of share ownership and it should be 2% of the value capitalized at $800,000 to give $16,000.This should definitely be correct.
- Aug 07, 2018 at 12:53pm
- but this is for 2016 and the rules for 2016 needs to be applied
- Aug 07, 2018 at 1:17pm
- this is just the amount of percentage acquired
- Aug 07, 2018 at 1:19pm