Assignment Problem Fourteen - 6 (Capital Dividend Account) Since its incorporation in 2008, Park Inc. has qualified as a Canadian controlled private corpo- ration. During the period since incorporation and until December 31, 2019, the Company has had the following transactions that might involve the capital dividend account. 1. In 2010, the Company sold a depreciable asset with a capital cost of $225,000. It was the last asset in its class and the balance in the Class at the time of the sale was $129,600. The proceeds from the sale were $275,000. No assets were added to the Class during 2010. 2. In 2012, the Company received a capital dividend of $46,000. 3. In 2013, the Company received life insurance proceeds, net of the adjusted cost base of the policy, in the amount of $27,500. 4. In 2014, the Company paid a capital dividend of $38,000 and eligible dividends of $19,000. The required election was made. 5. In 2014, the Company sold a parcel of land for $100,000. The adjusted cost base of this land was $ 145,000. 6. In January 2019, Park acquired all of the shares of a small incorporated business at a cost of $850,000. This total cost was allocated as follows: Non-Depreciable Assets $150,000 Depreciable Assets (See Note) 500,000 Goodwill 200,000 Total Cost $850,000 Note The capital cost of the non-depreciable assets to the acquired business was $100,000. The capital cost of the depreciable assets was $450,000 and their UCC was $375,000. The goodwill was internally generated and was not reflected on the books of the acquired business. Park does not use a rollover provision to transfer the assets. While Park intended to integrate this business into its other operations, they received an unsolicited offer to purchase the shares of this business for $965,000. Finding this offer too attractive to resist, it was accepted and the business was sold on October 1, 2019. On January 1, 2019, Park had no UCC balance in Class 14.1. The total proceeds were allocated as follows: Non-Depreciable Assets $175,000 Depreciable Assets 550,000 Goodwill 240,000 Total Proceeds $965,000 7. In 2019, the Company received a capital dividend of $17,800. They paid a capital divi- dend of $21,600 and eligible dividends of $8,000. The required election was made. Required: Determine the balance in the Company's capital dividend account as of December 31, 2019. Assignment Problem Fourteen - 6 (Capital Dividend Account) Since its incorporation in 2008, Park Inc. has qualified as a Canadian controlled private corpo- ration. During the period since incorporation and until December 31, 2019, the Company has had the following transactions that might involve the capital dividend account. 1. In 2010, the Company sold a depreciable asset with a capital cost of $225,000. It was the last asset in its class and the balance in the Class at the time of the sale was $129,600. The proceeds from the sale were $275,000. No assets were added to the Class during 2010. 2. In 2012, the Company received a capital dividend of $46,000. 3. In 2013, the Company received life insurance proceeds, net of the adjusted cost base of the policy, in the amount of $27,500. 4. In 2014, the Company paid a capital dividend of $38,000 and eligible dividends of $19,000. The required election was made. 5. In 2014, the Company sold a parcel of land for $100,000. The adjusted cost base of this land was $ 145,000. 6. In January 2019, Park acquired all of the shares of a small incorporated business at a cost of $850,000. This total cost was allocated as follows: Non-Depreciable Assets $150,000 Depreciable Assets (See Note) 500,000 Goodwill 200,000 Total Cost $850,000 Note The capital cost of the non-depreciable assets to the acquired business was $100,000. The capital cost of the depreciable assets was $450,000 and their UCC was $375,000. The goodwill was internally generated and was not reflected on the books of the acquired business. Park does not use a rollover provision to transfer the assets. While Park intended to integrate this business into its other operations, they received an unsolicited offer to purchase the shares of this business for $965,000. Finding this offer too attractive to resist, it was accepted and the business was sold on October 1, 2019. On January 1, 2019, Park had no UCC balance in Class 14.1. The total proceeds were allocated as follows: Non-Depreciable Assets $175,000 Depreciable Assets 550,000 Goodwill 240,000 Total Proceeds $965,000 7. In 2019, the Company received a capital dividend of $17,800. They paid a capital divi- dend of $21,600 and eligible dividends of $8,000. The required election was made. Required: Determine the balance in the Company's capital dividend account as of December 31, 2019