It is about Canadian Income Tax

E14-3 Non-depreciable: FMV ACB Elect at FMV *Taxable capital gain 650,000 500,000 650,000 Means Ltd. has a December 31 year end. On May 1, 2021, all of the company's shares are acquired by an unrelated person. For the period January 1, 2021, through April 30, 2021, the company has a business loss of $45,000 and has a 2019 net capital loss balance of $110,000. In addition, the company owns the following properties at April 30. 2021: Impact on losses: The net capital loss balance would be: Adjusted Cost Base/ Capital Cost $500,000 400,000 Type of Capital Property Non-depreciable Depreciable Fair Market Value UCC N/A 350,000 $650,000 500,000 Depreciable: FMV ACB UCC Elect at FMV * Taxable capital gain * Recapture 500,000 400,000 350,000 500,000 Advise the company with respect to the most appropriate elections to be made to minimize the impact of the AOC. Explain your results. Impact on losses: Would the net capital loss balance be fully utilized? What about the non-capital losses? Is it worth it? E14-3 Non-depreciable: FMV ACB Elect at FMV *Taxable capital gain 650,000 500,000 650,000 Means Ltd. has a December 31 year end. On May 1, 2021, all of the company's shares are acquired by an unrelated person. For the period January 1, 2021, through April 30, 2021, the company has a business loss of $45,000 and has a 2019 net capital loss balance of $110,000. In addition, the company owns the following properties at April 30. 2021: Impact on losses: The net capital loss balance would be: Adjusted Cost Base/ Capital Cost $500,000 400,000 Type of Capital Property Non-depreciable Depreciable Fair Market Value UCC N/A 350,000 $650,000 500,000 Depreciable: FMV ACB UCC Elect at FMV * Taxable capital gain * Recapture 500,000 400,000 350,000 500,000 Advise the company with respect to the most appropriate elections to be made to minimize the impact of the AOC. Explain your results. Impact on losses: Would the net capital loss balance be fully utilized? What about the non-capital losses? Is it worth it