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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

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