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Problem 12 (Chapter 15: Problem 2) Bob Stein is a friend of yours who owns all the shares of Stein Ltd., a Canadian-controlled private corporation

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Problem 12 (Chapter 15: Problem 2) Bob Stein is a friend of yours who owns all the shares of Stein Ltd., a Canadian-controlled private corporation incorporated in 1999. He has heard recently about something called the capital dividend account and he is wondering if his company might have one. He would like you to explain to him what a capital dividend account is, advise him on whether his company qualifies for one and determine if Stein Ltd. has a CDA balance. Use the following format for your analysis: Capil Capital Unused Dlrllend Unused Life Divide!!! Transaction CGJCL Received ECP Insurance Paid Balance Bob has provided you with the following additional information: You have reviewed the tax returns of the corporation for the period January 1, 1999 to December 31, 2015, and made the following notes: 2001 2002 2003 2006 2007 2008 2009 2010 2011 2012 2013 2015 Disposed of bonds resulting in a capital gain of $10,000. Received taxable dividend of $2,000 and capital dividend of $5,000. Disposed of shares resulting in a capital loss of $4,000. Disposed of equipment resulting in a capital gain of $6,000 and recapture of $3,000. Eligible capital property was purchased for $40,000. Sold vacant land and reported capital gain of $100,000. 2008 capital gain on sale of vacant land was reassessed by the CRA as income. Stein Limited did not fight the reassessment. Sold shares resulting in a capital gain of $20,000. Received life insurance proceeds of $100,000 on a life insurance policy on the life of the company president purchased in 2005. As at January 1, 2011, the policy had an adjusted cost basis of $20,000. Paid capital dividends of $50,000. Sold a customer list for $100,000. The company's cumulative eligible capital balance at the time of the sale was $25,000. Sold shares resulting in a capital gain of $37, 500

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