Canadian Tax accounting/law

Advise/recommend moblem 7 e ITA 54 10) arted operations in 2008. Batterup Ltd. has been quite profitable in recent years. As a result, ding cash, as at December 31, 2021. The offer price reflects unrecorded goodwill of $475,000 Ret wants to wind up the company after the sale of the assets the proforma balance sheet of Batterup Ltd, as at December 31, 2021, is as follows Assets Cost UCC FMV Cash $ 25,000 Accounts receivable (net) 87,500 $ 75,000 Inventory 222,500 155,000 Land 110,000 450,000 Building 350,000 $ 75,000 950,000 Equipment 450,000 220,000 100,000 Marketable securities 142,500 320,000 $1,387,500 $2,050.000 Liabilities Current liabilities $ 540,000 Future income taxes 50,000 Shareholder's Equity Share capital (PUC) 100,000 Retained earnings 697,500 Total liabilities and equity $1,387,500 + Q + bitional Information Batterup Ltd, pays corporate tax at an overall combined rate of 13% on active business income obbe for the small business deduction, 27% on active business income not eligible for the small es deduction, and an initial 40% rate for investment income, plus the 10% additional refundable vestment income. The corporation has a GRIP balance of nil. () The reserve for doubtful accounts at December 31, 2021 was $15.000. ) Batterup Ltd, and Three-Strikes Lid elected under section 22. The company has a capital dividend account balance of $40,000. You have agreed to do the (A) Compute the amount available for distribution to the shareholder king for Ms. Bast: Introduction to Federal Income Taxation in 440 (B) Determine the components of the distribution to the shareholder. (C) Compute the taxable capital gain or allowable capital loss on the disposition of Ms. Bast's shares on the winding-up. (Assume the adjusted cost base of Ms. Bast's common shares is $100,000.) (D) Explain the conditions for and advantages of using a section 22 election. Advise/recommend moblem 7 e ITA 54 10) arted operations in 2008. Batterup Ltd. has been quite profitable in recent years. As a result, ding cash, as at December 31, 2021. The offer price reflects unrecorded goodwill of $475,000 Ret wants to wind up the company after the sale of the assets the proforma balance sheet of Batterup Ltd, as at December 31, 2021, is as follows Assets Cost UCC FMV Cash $ 25,000 Accounts receivable (net) 87,500 $ 75,000 Inventory 222,500 155,000 Land 110,000 450,000 Building 350,000 $ 75,000 950,000 Equipment 450,000 220,000 100,000 Marketable securities 142,500 320,000 $1,387,500 $2,050.000 Liabilities Current liabilities $ 540,000 Future income taxes 50,000 Shareholder's Equity Share capital (PUC) 100,000 Retained earnings 697,500 Total liabilities and equity $1,387,500 + Q + bitional Information Batterup Ltd, pays corporate tax at an overall combined rate of 13% on active business income obbe for the small business deduction, 27% on active business income not eligible for the small es deduction, and an initial 40% rate for investment income, plus the 10% additional refundable vestment income. The corporation has a GRIP balance of nil. () The reserve for doubtful accounts at December 31, 2021 was $15.000. ) Batterup Ltd, and Three-Strikes Lid elected under section 22. The company has a capital dividend account balance of $40,000. You have agreed to do the (A) Compute the amount available for distribution to the shareholder king for Ms. Bast: Introduction to Federal Income Taxation in 440 (B) Determine the components of the distribution to the shareholder. (C) Compute the taxable capital gain or allowable capital loss on the disposition of Ms. Bast's shares on the winding-up. (Assume the adjusted cost base of Ms. Bast's common shares is $100,000.) (D) Explain the conditions for and advantages of using a section 22 election