Reference no: EM133072930

For each of the below, calculate the federal and provincial tax on the investment income stated assuming Janice lives in New Brunswick and that her total income before investments is $50,000.

1. Janice holds a Canada Savings Bond that will pay her $250 in interest this year.
2. Janice has decided to sell her 300 shares in XYZ co. at a price of $65 per share. She purchased the shares for $50 per share 2 years ago.
3. Janice holds 1500 shares in ABC Inc. These shares will pay $1.25 in dividend income this year. ABC is a large corporation paying "eligible" dividends. For this year, the gross up amount is 38% and the dividend tax credits are, 17.65% federally and 8.87% provincially.

Federal tax rates for 2021

• 15% on the first $49,020 of taxable income, plus
• 20.5% on the next $49,020 of taxable income (on the portion of taxable income over 49,020 up to $98,040), plus
• 26% on the next $53,939 of taxable income (on the portion of taxable income over $98,040 up to $151,978), plus
• 29% on the next $64,533 of taxable income (on the portion of taxable income over 151,978 up to $216,511), plus
• 33% of taxable income over $216,511

Provincial and territorial tax rates for 2021

New Brunswick

9.68% on the first $43,835 of taxable income, +
14.82% on the next $43,836, +
16.52% on the next $54,863, +
17.84% on the next $19,849, +
20.3% on the amount over $162,383