Controlled Private Corporation Case Assignment Canadian

Question Description

The following information has been provided for Haltech Co., a Canadian-controlled private corporation, for its current taxation year.

Opening balance in non-eligible refundable dividend

tax on hand (NERDTOH)                                                         $     nil
Interest received on portfolio investments                         24,000
Eligible dividends received on portfolio investments        $4,500
Non-eligible dividend received on Company I shares (1)    3,600
Non-eligible dividends received from Company II (2)        20,000

(1)  Haltech owns 2% of the shares of Company I.
(2)  Haltech owns 25% of the shares of Company II. The company received a dividend refund of 15% of dividends paid.

What is the addition to NERDTOH as a result of these events and transactions?

a)  $6,940

b)  $13,465

c) $16,407

d) $11,740