Questions & AnswersTax law

Max Kalba has employment income in excess of $200,000 per year....

Question
Answered step-by-step
Asked by MinisterSnow827 on coursehero.com

Max Kalba has employment income in excess of $200,000 per year....










Max Kalba has employment income in excess of $200,000 per year. Because of this, any additional income that he received will be subject to acombined federal/provincial tax rate of 42 percent. Several years ago, he established an unincorporated business that he anticipates will haveactive business income of $ 144363 during the coming year. In his province of residence, the corporate tax rate is 3 percent on income that iseligible for the small business deduction and 11 percent on other income. His combined federal/provincial tax on dividends (includingadjusting for the dividend gross up) for non-eligible dividends is 33 percent.Assuming the federal tax rate for active business income is 11 percent, what is the total income retained by Mr. Kalba should he decide to keepthe business as a proprietorship 


Hint : Answer 83,731

Please provide explanation

Answer & Explanation

Solved by verified expert
Answered by bernadettelunaria04 on coursehero.com

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellesectetur

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pelsectetur

 

 

sectetur a

CliffsNotes Logo

Unlock access to this and over
10,000 step-by-step explanations

Unlock Explanation

Have an account? Log In

<p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pe</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pelle<u>sectetur</u></p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisi<strong><u>sectetur</u></strong></p>

Step-by-step explanation

sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laore

 

sectetur adipiscing elit. Nam

 

sectetur adipiscing elit. Nam lacinia pulvina

sectetur

Get unstuck with a CliffsNotes subscription

Example CliffsNotes Question and Answer
Unlock every step-by-step explanation, download literature note PDFs, plus more.Get Access

Related Q&A