In 2021, M. Dodge receives $15,500 in eligible dividends from Canadian public corporations. The following relates to M. Dodge:
1. Income is subject to federal income tax of 27% plus 12% for provincial income tax.
2. On eligible dividends, the province provides a dividend tax credit equal to 23% of the gross up. Determine the total federal and provincial income tax that will be payable on these dividends and the after tax retention.
Determine the total federal and provincial income tax that will be payable on these dividends and the after tax retention.