A sale of the assets of B Ltd. took place on January 2, 20X2. The assets and
Question:
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B Ltd. and the purchaser made a joint election under section 22 of the Income Tax Act with respect to the Accounts receivable.
An examination of the corporate tax return for the year ended December 31, 20X1 showed the following:
€¢ B Ltd. is a Canadian-controlled private corporation.
€¢ An allowance for doubtful accounts of $100,000 was claimed at the December 31, 20X1 year end.
€¢ The Paid-up capital of the corporation is $10,000.
€¢ The General rate income pool (GRIP) balance was nil.
€¢ The corporation has a Capital dividend account balance of $20,000 and a balance in its refundable dividend tax on hand (RDTOH) account of $9,000.
Determine the amount available for distribution to the shareholders after the sale of the assets.
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The amount available to distribute to the shareholders of B Ltd ...View the full answer
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
