Reference no: EM132694800

Problem 1: Martin Aggerwal has a 30 percent interest in a partnership. During the current year, the partnership realized capital gains of $42,000, received non-eligible dividends of $15,000, and made charitable donations of $6,000. Martin has made no charitable donations personally. He has no income that will be taxed at 33 percent at the federal level. Which of the statements is correct?

A. Martin will report taxable capital gains of $6,300, will have a federal dividend tax credit of $467, and a charitable donations tax credit of $494.

B. Martin will report taxable capital gains of $12,600, will have a federal dividend tax credit of $467, and a charitable donations tax credit of $522.

C. Martin will report taxable capital gains of $6,300, will have a federal dividend tax credit of $933, and a charitable donations tax credit of $494.

D. Martin will report taxable capital gains of $6,300, will have a federal dividend tax credit of $467, and a charitable donations tax credit of $522.