A private limited company is considering converting to a close corporation. You are given the following information. Balance Sheet at previous year end 31 Dec. 1989 Balance Sheet at date of conversion 30 June 1990 R Fixed assets Fixed assets A's shareholding is 40 000 net 125 00 A's shareholding 40 000 net 123 000 B's shareholding is 35 000 Bs shareholding 35 000 C's shareholding is 32 000 investments 15 000 C's shareholding 32 000 Investments 15 000 D's shareholding is 28 000 p's shareholding 28 000 Stocks 41 000 Share premium account Non-distributable reserves Retained surplus Overdrafts Creditors and provisions Shareholders for dividends 5 000 Stock Debtors 15 000 Cash 5 000 30 000 Share premium 45 000 Account 24 000 Non-distributable 5751 reserves Retained surplus Overdrafts Creditors & provision 5 000 Debtors 15 000 7 000 Cash 25 000 22000 8 000 18 000 22 000 6 750 214 750 Dividends 214 750 209 000 209 000 The fixed assets were valued at The investments were valued at The stock was valued at The debtors were valued at 100 000 12 000 40 000 22 000 The fixed assets were valued at The investments were valued at The stock was valued at The debtors were valued at 97 000 12 000 40 000 21 500 On conversion it is agreed that the percentage interests are to be South African Corporate Law / ICG/ Page 36 30% 25% 24% 21% 100% (a) (b) Show the amount of each member's interest. (24) Did the shareholders pay tax on the amount distributed to the shareholders on conversion on 1 July 1990? (1)