Julstan Multi-Enterprise Limited (JML) is a Canadian-controlled private corporation that was incorporated in Ontario in 2003. It has operated with a December 31 year-end since that time. At its December 31, 2003 tax year-end, the balance in its capital dividend account was nil, with no negative amounts carried for future offset. The company now wants to calculate its capital dividend account as at December 31, 2019.

The following transactions occurred in the indicated taxation years after December 31, 2003.

2005: Disposed of bonds resulting in a capital gain os $ 10,000

2006: Received a taxable dividend of $ 2000 and capital dividend of $ 5,000

2007: Disposed of shares resulting in a capital loss of $ 4,000

2010: Disposed of equipment resulting in a capital gain of $ 6,000 and

recapture of $ 3,000

2011: A customer list was purchased for $ 40,000

2014: Sold shares resulting in a capital gain of $ 20,000

2015: Received life insurance proceeds of $100,000 on the life of the president pursuant to a term life insurance policy under which the ACB was $ 20,000

2016: Paid capital dividends of $ 50,000

2019: Sold a cusomter list for $ 100,000. The companys class 14.1 balance at the time of the sale was $ 25,000.

2019: Sold shares resulting in a capital gain of $ 37,500.

Required:

Insert your answers in the spaces provided below.

(A)The following items will increase the capital dividend account balance (add more items as required) from December 31, 2003 to December 31, 2019.

Item Amount ($)

1.

2.

3.

4.

5.

6.

(B)The following items will decrease the capital dividend account balance (add more items as required) from December 31, 2003 to December 31, 2019.

Item Amount ($)

1.

2.

3.

(C )The following items will not increase or decrease the capital dividend account balance from Decmeber 31, 2003 to December 31, 2019 (add more items as required).

1.

2.

3.

(D). The CDA balance at December 31, 2019 is $ ______________________