Insal Ltd. Is a Canadian controlled private corporation. It has a decemeber 31 year end. The following information relates to its 2013 taxation year.
1) Insal ltd paid taxable dividends of $18,250 during the year.
2) During 2013, they had at taxable income of $123,400. Tax payable for the year was correctly calculated to be $23960. These totals do not include any foreign source income and no net capital losses were deducted during the year.
3) Insal ltd. Owns 45% of the voting shares of Dorne INC., another CCPC with a December 31 year end. During 2013, Dorne INC paid taxable dividends of $25,200. As a consequence of paying these dividends, Drone INC received a dividend refund of $8,400.
4) At the end of 2012, the companys refundable dividend tax on hand balance was $6450. The 2012 dividend refund was $2300
5) Other income that was reported by insal consisted of following amounts.
a. Capital gain on sale of land $24,600
b. Dividends from embridge preferred shares $6200
c. Net rental income from residential properties $4200
6) Insal ltd is aasociated with several other copororations. Insal has been allocated $45,000 of the associated groups annual business limit. This amount is significantly less than the companys active business income for 2013.
Requred: for the taxation year ending December 31, 2013, determine the part IV and refundable part 1 taxes that will be payable by Insal ltd. In addition, determine the balance in the refundable dividend tax on hand account at December 31 2013, and any dividend refund available. Show all the calcluations used to provide the required information, including those for which the result is NIL.