Rocky Ridge Holdings Ltd. is a private Canadian corporation….
Rocky Ridge Holdings Ltd. is a private Canadian corporation. Before making its year-end distribution, its Capital Dividend Account has a balance of $48,000. The directors decide to pay a $60,000 dividend to the sole shareholder and file an election to treat the entire amount as a capital dividend. The corporation’s accountant later discovers that only $48,000 of CDA was available when the dividend was paid. No corrective election is made. What is the Part III tax payable by Rocky Ridge Holdings Ltd.?