Medtech Inc. is a CCPC that uses a calendar-based taxation y…

Questions

Medtech Inc. is а CCPC thаt uses а calendar-based taxatiоn year ending December 31. On January 1, 2024, the balance in the Cоmpany's Nоn-Eligible RDTOH account is $17,445 and the balance in its Eligible RDTOH and GRIP accounts are both nil.Medtech's 2024 taxable income is $456,250. and its 2024 Part I tax payable is $82,506. The company has no foreign income in 2024 and no loss carryovers claimed in determining its taxable income.The Company's 2024 net income includes the following amounts of taxable capital gains and income from property:Taxable Capital Gains $43,730Eligible Dividends from Canadian Public corporations 26,560Rental Income from a Residential Property 14,760Non-eligible dividends - Connected Company (See Note) 77,700Note - The non-eligible dividends were received from Medcare, another CCPC in which Medtech owns 42% of the voting shares. The voting shares of Medcare owned by Medtech represent 27% of the value of all of the corporation's shares. Medcare was entitled to a dividend refund of $20,386 for its 2024 taxation year.Medtech is associated with four other corporations. The 2024 small business limit for the SBD is shared equally by Medtech and these four other corporations. The $100,000 allocation is significantly less than the Company's active business income in 2024.Medtech Inc. paid taxable dividends of $66,560 in 2024. It is the policy of the corporation to designate dividends as eligible only to the extent that they are entitled to a dividend refund.In 2023, Medtech and its associated corporations had combined Adjusted Aggregate Investment Income (AAII) of $32,400 and combined Taxable Capital Employed in Canada (TCEC) was $2,300,000.Required:Determine the refundable portion of Medtech's Part I Tax for 2024. Determine Medtech's 2024 Part IV Tax. Determine the December 31, 2024 balances in Medtech's Eligible and non-eligible RDTOH accounts. Determine Medtech's 2024 dividend refund, providing separate amounts for refunds on eligible dividends and non-eligible dividends.

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