What is the net personal tax liability on dividend

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Problem 1: In 2020, Mango Inc. earned $150,000 of pre-tax income. The tax rate for the company is 13%. The sole shareholder received all of the net earnings in the form of a non-eligible dividend during the year. The shareholder has a personal tax rate of 50%. Supposing the shareholder is entitled to a total (federal + provincial) dividend tax credit equal to $20,000, what is the net personal tax liability on the dividend (ignoring all other tax implications)? (Round all numbers to zero decimal places.)

Reference no: EM132842484

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