E, an individual, received $40,000 of non-eligible dividends from Canadian corporations in the current year. What amount is included in E’s net income for tax purposes for the current year? Solution When an individual receives non-eligible dividend from a Canadian Corporation, it is grossed up to 116%. Thus, the amount included in E\'s net income for tax purposes for current year would be =116%*$40000= $46400.

1. E, an individual, received $40,000 of non-eligible dividends from Canadian corporations in the
current year. What amount is included in E’s net income for tax purposes for the current year?
Solution
When an individual receives non-eligible dividend from a Canadian Corporation, it is grossed up
to 116%. Thus, the amount included in E's net income for tax purposes for current year would
be =116%*$40000= $46400