Ontario Barrister and Solicitor Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Ontario Barrister and Solicitor Exam with essential study materials, quizzes, and resources. Equip yourself with the knowledge needed to succeed in your legal career!

Practice this question and more.

How much income must a Canadian shareholder report on a $200 dividend?

$200
$276
$238
$215

The correct answer is: $238

The amount of income that a Canadian shareholder must report on a $200 dividend depends on their personal tax situation. While a shareholder may in theory receive the full $200 in cash, they may have to pay taxes on it. The $200 dividend could actually be taken from a different source, such as the corporation's retained earnings, and may be subject to different tax rates. This means that the actual amount of taxable income could be different than the $200 received as a dividend. However, out of the options presented, $238 is the closest to the possible amount of income a shareholder may have to report on a $200 dividend. The other options are either too low or too high and do not accurately reflect the potential tax liabilities of receiving a $200 dividend.