You Own 100 Shares of a Canadian Income Trust Corporation

question 12

Multiple Choice

You own 100 shares of a Canadian Income Trust Corporation.The corporation earns $5.00 per share before taxes.Once the corporation has paid any corporate taxes that are due,it will distribute the rest of its earnings to its shareholders in the form of a dividend.If the corporate tax rate is 40% and your personal tax rate on (both dividend and non-dividend) income is 30%,then how much money is left for you after all taxes have been paid?

• A) $210
• B) $300
• C) $350
• D) $500