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Mr. Cecil Tynone owns 100% of the shares of CT lndustries a CCPC a th a December 31 bacabion year and. The company was incerporales

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Mr. Cecil Tynone owns 100% of the shares of CT lndustries a CCPC a th a December 31 bacabion year and. The company was incerporales by lar. Tyrowe iat an itreotrment of \$64. 000 for common shaceit Mr. Tyrone is 73 years old and has ho heirs with an interest in taking ouer the ecoporace businest. He would tike to soll the corporate butinest and devele tiv alition to the atucy. of astonomy. He has rectived two offers for the comerabion. The first, made by bh. Heatwer Giechabat is an ofler to buy all of the shares for 51.450,000. The second ofler man been mabl ty Mr. Barkey Charms, and is an offer to acoulie the atsets of the bunimens. the soecite anseth that he would biy, and the prices that he it oflecing. are as followit. Both otlers would require the purchase to take place on awwary 2, 2022. On January 1. zoaz, the Balance Sheet of CT Industries is at folloen: The capital cost of the bulding is 5361.000 and it is the orly procecty in as. CCA class. The UCC of the ciass is 5112 .000. Non-Elighte Rotoot, or GRIP acoount. The lerm deposis have been ewned by the compary for over flve years. They nopesent an investment of excess funds, Mr. Tyrone had no peisonal need for these tands and he wished to deler personal tasation on the eanings they were generating. Aar of the company' inon-curment property were accuited in the latt to years. The prowincial income tax rale on corpocate income that is eligbie for the small brumenu deducton is 3% and 12 the on other corporatio incame Mur, fyrben has othed incone in excest of $250.000 and, at a conaptuence hes Anderal income tas rate on all addbonal income is 334 and his provinciel inceme tam rate in 16 s He resides in a province where be provincid biblend lax eredt on ollolie dhidends a Sit of the goss up. and on non-ebible drefonth is 4 his of the gras ue. Me Tremen has not ised any of his capital gains deductoen. will sell the berm deposts and marketable securites foe their acooonbog catryey nalues which are equal to their FMY. With respech to the sule of the acoounta raceivalit. ansetin Required: Determine which of the two oflers wal provide Mr. Trone with the largest amount of personal aher-tas lanos. lonole the possiblity that Mr. Tyoos might be subject to the allemative minimum tak (AMT). Assume that acpropnale electoes of desigrucions will be made bo minimise Mr. Tyrone's personal income tare labbility. Mr. Cecil Tynone owns 100% of the shares of CT lndustries a CCPC a th a December 31 bacabion year and. The company was incerporales by lar. Tyrowe iat an itreotrment of \$64. 000 for common shaceit Mr. Tyrone is 73 years old and has ho heirs with an interest in taking ouer the ecoporace businest. He would tike to soll the corporate butinest and devele tiv alition to the atucy. of astonomy. He has rectived two offers for the comerabion. The first, made by bh. Heatwer Giechabat is an ofler to buy all of the shares for 51.450,000. The second ofler man been mabl ty Mr. Barkey Charms, and is an offer to acoulie the atsets of the bunimens. the soecite anseth that he would biy, and the prices that he it oflecing. are as followit. Both otlers would require the purchase to take place on awwary 2, 2022. On January 1. zoaz, the Balance Sheet of CT Industries is at folloen: The capital cost of the bulding is 5361.000 and it is the orly procecty in as. CCA class. The UCC of the ciass is 5112 .000. Non-Elighte Rotoot, or GRIP acoount. The lerm deposis have been ewned by the compary for over flve years. They nopesent an investment of excess funds, Mr. Tyrone had no peisonal need for these tands and he wished to deler personal tasation on the eanings they were generating. Aar of the company' inon-curment property were accuited in the latt to years. The prowincial income tax rale on corpocate income that is eligbie for the small brumenu deducton is 3% and 12 the on other corporatio incame Mur, fyrben has othed incone in excest of $250.000 and, at a conaptuence hes Anderal income tas rate on all addbonal income is 334 and his provinciel inceme tam rate in 16 s He resides in a province where be provincid biblend lax eredt on ollolie dhidends a Sit of the goss up. and on non-ebible drefonth is 4 his of the gras ue. Me Tremen has not ised any of his capital gains deductoen. will sell the berm deposts and marketable securites foe their acooonbog catryey nalues which are equal to their FMY. With respech to the sule of the acoounta raceivalit. ansetin Required: Determine which of the two oflers wal provide Mr. Trone with the largest amount of personal aher-tas lanos. lonole the possiblity that Mr. Tyoos might be subject to the allemative minimum tak (AMT). Assume that acpropnale electoes of desigrucions will be made bo minimise Mr. Tyrone's personal income tare labbility

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