Question 1 (25 marks) Scarborough Inc. is a CCPC that uses a calendar-based taxation year ending December 31. For the 2024 taxation year the company's net income was made up of the following components: Active Business Income (Note 1) $ 514,400 Taxable Dividends from Canadian Corporations: Wholly Owned Subsidiary (Note 2) 297,400 Portfolio Investments (All Eligible Dividends) 89,600 Canadian Interest Income 44,300 Taxable Capital Gains 93,100 2023 Net Income $1,038,800 Note 1 - As determined under ITR 5200, $336,000 of this total qualifies as M&P profits. As these amounts are allocated to a territory which has a special rate for M&P profits, the company calculates the federal M&P deduction. Note 2 - The subsidiary was entitled to a dividend refund of $42,600 in 2024 as a result of paying these taxable dividends. None of the dividends were designated as eligible. Other Information Relevant to the 2024 taxation year: 1. Scarborough Inc. is part of a group of associated corporations. It has been agreed that Scarborough Inc. will be allocated $400,000 of the group's 2024 small business limit for purposes of determining the SBD. 2. At January 1, 2024, Scarborough Inc. had an Eligible RDTOH account balance of $14,000 and a 1,000 balance in its Non-Eligible RDTOH account. 3. At December 31, 2023, Scarborough Inc. had a GRIP account balance of $136,700. 4. In the 2023 taxation year, Scarborough and its associated corporations had Adjusted Aggregate Investment Income (AAII) of $67,650 and the combined Taxable Capital Employed in Canada (TCEC) was $14,652,000. 5. On July 1, 2024, Scarborough Inc. paid taxable dividends to its shareholders in the amount of $132,400. 6. The Company has a 2022 net capital loss balance of $10,000 and a 2022 non-capital loss balance of $153,400. It plans to claim both of these loss carryovers for its 2024 taxation year. Required: For Scarborough Inc.'s 2024 taxation year, calculate the following: A. Part I Income Tax. 14 marks B. The refundable portion of Part I Tax. 1 mark C. Part IV Tax. 2 marks D. The balance in the GRIP account on December 31, 2024. 1 mark E. The balances in the two RDTOH accounts on December 31, 2024. 4 marks F. The dividend refund, if any, showing separately the amount related to eligible dividends and the amount related to non-eligible dividends. 2 marks G. Total federal income tax payable (net of any dividend refund). 1 mark