20X3 520,000 20X4 570,000 Page 630 2. The assets described in the attached balance sheet have the following current fair market values: Current assets$300,000 Land 150,000 Buildings 400,000 Equipment 100,000 Licence 120,000 Goodwill 200,000 3. The undepreciated capital cost of depreciable property at December 31, 20X1, after current capital cost allowance, is as follows: Buildings $240,000 Equipment 90,000 Licence 70,000 4. The cumulative eligible capital account at December 31, 20X1, amounted to $22,000 after the 20X1 deduction. 5. The financial statements include amortization at an amount equal to the available capital cost allowance. 6. Cameron does not have a detailed breakdown of manufacturing profits and retail profits, although he estimates the retail profits to be $100,000. Cameron is confused about how a corporate structure would be worthwhile and is concerned that, according to what he had heard, double taxation might result in certain circumstances. Cameron's son Eric is 23 years old and is actively involved in the business, earning a salary of $40,000 annually. Eric has spent most of his time at the manufacturing plant but intends to become involved in the retail operations as well. Cameron looks at the manufacturing activity as a separate business from the retail operation. The meeting ended with you agreeing to provide a report to Cameron on the issues discussed. Required: Prepare the report, together with any supporting calculations and analyses you feel are necessary. Page 632