You Have Been Provided with the Following Information: Corporation X

question 3

Multiple Choice

You have been provided with the following information: Corporation X had a non-eligible RDTOH balance of $15,000 at the end of 20x0,and the dividend refund from non-eligible RDTOH to the company in 20x0 was $7,000.The company's Part IV tax on non-eligible dividends for 20x1 is $8,000.The company's active business income is $475,000 and its taxable income is $410,000.Corporation Y (which is associated with Corporation X) was allocated $125,000 of the small business deduction in 20x1.(Corporation Y only has active business income.) Corporation X's has investment income which remained at $45,000 in both 20x0 and 20x1.The total taxable capital of the two corporations is less than $10 million.Part I tax for 20x1 was $55,000.What is Corporation X's non-eligible RDTOH balance at the end of 20x1? (Round all numbers)

• A)$8,000
• B)$16,000
• C)$26,733
• D)$65,623

---

Definitions:

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.

Interest Rate

The cost of borrowing money or the return on investment expressed as a percentage, typically on an annual basis.

Implicit Costs

Non-monetary opportunity costs, such as time or foregone alternatives, not directly accounted for in financial transactions.

Explicit Costs

Direct, out-of-pocket payments for expenses such as wages, rent, and materials, which are easily quantifiable.