Reference no: EM132919943

Question - The following information relates to the investment income received by Mr. Speculator during 2020. All amounts are in Canadian currency, unless otherwise stated.

1. Eligible dividends received from taxable Canadian corporations:

(a) Bell Canada $1,500 (actual amount)

(b) George Weston Limited $1,200 (actual amount)

(c) Bombardier Inc. $2,500 (actual amount)

2. During 2019, Mr. Speculator transferred his shares in Stelco Canada Inc. to Mrs. Speculator, as a birthday present. During 2020, she received eligible dividends from these shares in the amount of $2,000.

3. During 2020, Mr. Speculator purchased two Canada Savings bonds, which he transferred to his children, on their respective birthdays. His son, Robert, celebrated his 18th birthday in 2020 and his daughter, Roberta, celebrated her 16th birthday in 2020. Each child received $500 in bond interest during 2020.

4. On July 1, 2019, Mr. Speculator purchased a 5-year G.I.C. Interest earned on the G.I.C. from July 1, 2019 to June 30, 2020 was $375.

5. During 2020, Mr. Speculator received dividends from Pfizer Inc., a U.S. corporation. The actual amount of dividends received, after the withholding taxes were deducted at a rate of 15%, was $425. This amount was paid to him in U.S. currency. Assume that the average U.S. exchange rate for 2020 was $1.00 U.S. = 1.32690 Cdn.

6. Mr. Speculator owns shares in T.D.L. Holdings Limited, a Canadian-controlled Private corporation. During 2020, this company paid dividends out of its Capital Dividend Account. Mr. Speculator received $6,000 from this transaction.

7. During 2020, Mr. Speculator purchased a 90-Day Treasury Bill at a cost of $9,452. The redemption value was $10,000 and the Treasury Bill matured in 2020.

8. Mr. Speculator paid the following amounts in 2020:

(a) Rental of safety deposit box $ 35.00

(b) Interest on funds borrowed to purchase investments 3,500.00

(c) Interest on house mortgage 4,600.00

Required -

1. Calculate Mr. Speculator's NET INVESTMENT INCOME for 2020

2. Calculate the Federal Dividend Tax Credit that Mr. Speculator will be entitled to claim on his 2020 personal income tax return.

Show all of your calculations in an organized excel tab and include any notes where appliable in your supporting documentation.