Which of the Following Statements with Respect to Eligible Dividends

question 72

Multiple Choice

Which of the following statements with respect to eligible dividends paid in 2011 is not correct?

• A)The recipient individual shareholder must gross them up by 41 percent.
• B)They generate a federal tax credit equal to 13/23 of the gross up.
• C)They can only be designated as eligible dividends by public companies.
• D)They can be designated as eligible dividends by a CCPC with a positive GRIP balance.

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Definitions:

Social

Relating to society or its organization, including interactions and relationships within.

United States Environment Protection Authority

A federal agency tasked with protecting human health and the environment by creating and enforcing regulations based on laws passed by Congress.

Prevention Costs

Expenditures incurred to prevent defects in products or services, including costs related to quality planning, training, and preventive maintenance.

Defects

Imperfections or faults in a product that cause it to deviate from its intended design, reducing its quality and possibly making it unfit for use.