Which of the following statements is correct?
A)The federal dividend tax credit is equal to 38 percent of the eligible dividends received.
B)The federal dividend tax credit is equal to 6/11 of the gross up on eligible dividends received.
C)The federal dividend tax credit is equal to 15 percent of the non-eligible dividends received.
D)The federal dividend tax credit is equal to 6/11 of the gross up on non-eligible dividends received.

Question

Quizplus · Accepted Answer

The federal dividend tax credit is calculated as 6/11 of the gross-up on eligible dividends received. Non-eligible dividends do not qualify for the dividend tax credit. Therefore, options A and C are incorrect. Option D is incorrect as it refers to non-eligible dividends, not eligible dividends.

Which of the Following Statements Is Correct