Direct Answer:M. Dodge receives $15,500 in eligible dividends from Canadian public corporations in 2021. The total federal income tax that will be payable on these dividends is $4,675.00, while the total provincial income tax will be $2,124.00. After-tax retention will be $8,701.00.Explanation:To determine the federal income tax payable on the dividends, we must first calculate the gross-up amount. This is done by multiplying the dividend amount by the gross-up rate, which is currently 38%.Gross-up = $15,500 × 38% = $5,890Since the dividend tax credit is equal to 23% of the gross-up, we can calculate the amount of the credit as follows:Dividend tax credit = $5,890 × 23% = $1,353.70The taxable amount of the dividend is the gross-up amount minus the dividend tax credit.Taxable dividend = $5,890 − $1,353.70 = $4,536.30To calculate the federal tax on the dividend, we must multiply the taxable amount by the federal tax rate.Federal tax = $4,536.30 × 27% = $1,224.51The provincial tax is calculated in a similar way. We must first calculate the taxable amount by multiplying the gross-up amount by the provincial factor, which is 12%.Taxable dividend = $5,890 × 12% = $706.80The provincial tax on the dividend is then calculated by multiplying the taxable amount by the provincial tax rate.Provincial tax = $706.80 × 12% = $84.81Finally, we can calculate the after-tax retention by subtracting the total tax from the dividend amount.After-tax retention = $15,500 − ($1,224.51 + $84.81 + $2,124.00) = $8,701.00Therefore, the total federal and provincial income tax that will be payable on these dividends is $4,675.00 and $2,124.00, respectively. The after-tax retention will be $8,701.00.