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:

Opportunity Cost

When deciding, the toll of not considering the next most beneficial alternative.

Bracelets

Jewelry items worn around the wrist for decoration, often made of metal, beads, or other materials.

Opportunity Cost

Opportunity cost is the value of the next best alternative foregone as a result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Allocatively Efficient

Allocatively Efficient means an economic state where resources are allocated in a way that maximizes the overall benefit to society, with goods and services distributed according to consumer preferences.