Martin Held 2 Percent of the Outstanding Shares of a Canadian

Multiple Choice

Martin held 2 percent of the outstanding shares of a Canadian public corporation. The corporation issued an eligible stock dividend in 2020 and capitalized $800,000 of its retained earnings. By how much will Martin's Taxable Income increase as a result of the dividend?

A) $ 8,000.
B) $16,000.
C) $18,400.
D) $22,080.