At the end of 2019, Gomez Inc., a CCPC, has a GRIP of $53,400. For 2020, the Company has Taxable Income of $143,000. This includes aggregate investment income of $19,000. In addition, the Company receives eligible dividends of $12,300. In calculating 2020 Tax Payable, the Company has a small business deduction of $16,150. During 2019, the company paid dividends of $42,000 with $13,700 of the dividends designated as eligible.
Dividends paid during 2020 total $51,000, with $18,400 of this amount being designated as eligible. What is the amount of the Company's GRIP at the end of the 2020 taxation year?

Question

Quizplus · Accepted Answer

The correct answer is A.The GRIP at the end of 2020 is $80,080. This is calculated as follows:GRIP at the end of 2019: $53,400Add: Taxable income for 2020: $143,000Less: Eligible dividends received in 2020: $12,300Less: Small business deduction for 2020: $16,150Less: Dividends paid in 2020: $51,000Add: Eligible dividends paid in 2020: $18,400GRIP at the end of 2020: $80,080

At the End of 2019, Gomez Inc