Problem 6 3. TLkenhurst Limited (ML) is a Canadian-controlled private corporation which was started 10 years ago by Mr. Santosh Prasad with an initial investmerit in common shares of $18,000. Mr. Prasad has decided that it's time to retire and move to his retirement home in Saskatoon, Saskatchewan. Therefore, in January 2023Mr. Prasad wishes to have JTL sell the assets to a corporate purchaser at their fair matket value and then wind up JTL. He would like your advice on how much capital he would have to invest personally if he wound up JTL, tand he would like your advice on whether he-shoulkd instead retain Th. The following is a projected tax balance sheet prior to the sale of the assets and the distribution of the resulting net cash as at the intended date of the winding-up: The books of account do not reflect unrecorded goodwill with an estimated fair market value of 560,000 . This is in addition to the customer lists. The accounts receivable are to be sold separately to a factoring company. Santosh is in the top personal tax bracket in 2022 and expects to be in that bracket in 2023 as well. After that he expects his retirement income to be approximately $100,000 per year. The customer lists were purchased in 2017. The company has a non-eligible RDTOH balance of $6,000, a capital dividend account balance of $12,000, and no GRIP. The provincial corporate tax rate for income eligible for the small business deduction is 4% and 12% for income above the small business deduction limit. For the next meeting you agree that you will: (A) Assess the situation. (B) Identify the issues. (C) Analyze the issues. (D) Advise/recommend. Problem 6 3. TLkenhurst Limited (ML) is a Canadian-controlled private corporation which was started 10 years ago by Mr. Santosh Prasad with an initial investmerit in common shares of $18,000. Mr. Prasad has decided that it's time to retire and move to his retirement home in Saskatoon, Saskatchewan. Therefore, in January 2023Mr. Prasad wishes to have JTL sell the assets to a corporate purchaser at their fair matket value and then wind up JTL. He would like your advice on how much capital he would have to invest personally if he wound up JTL, tand he would like your advice on whether he-shoulkd instead retain Th. The following is a projected tax balance sheet prior to the sale of the assets and the distribution of the resulting net cash as at the intended date of the winding-up: The books of account do not reflect unrecorded goodwill with an estimated fair market value of 560,000 . This is in addition to the customer lists. The accounts receivable are to be sold separately to a factoring company. Santosh is in the top personal tax bracket in 2022 and expects to be in that bracket in 2023 as well. After that he expects his retirement income to be approximately $100,000 per year. The customer lists were purchased in 2017. The company has a non-eligible RDTOH balance of $6,000, a capital dividend account balance of $12,000, and no GRIP. The provincial corporate tax rate for income eligible for the small business deduction is 4% and 12% for income above the small business deduction limit. For the next meeting you agree that you will: (A) Assess the situation. (B) Identify the issues. (C) Analyze the issues. (D) Advise/recommend