How much of a dividend refund will Blackfoot receive

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Reference no: EM132856940

Question - Blackfoot Portfolio Ltd. (Blackfoot) is a CCPC. The following information relates to the 2019 taxation year:

Non-eligible dividend received from a wholly owned subsidiary that is a CCPC is $3,000. The wholly owned subsidiary did not receive any dividend refund as a result of the dividends paid to Blackfoot.

AII is $1,000.

Part I tax payable before dividend refund is $1,000.

Taxable non-eligible dividends paid to shareholders are $2,000.

Opening NERDTOH balance after accounting for a prior-year dividend refund is $200.

There is no balance in ERDTOH

Required - If Blackfoot's NERDTOH balance at the end of 2019 was $600, how much of a dividend refund will Blackfoot receive as a result of dividends paid in 2019?

a) $0

b) $600.00

c) $766.67

d) $2,000.00

Reference no: EM132856940

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