Problem 8 You have been approached by Mr. Sidney Chow, a Canadian resident, for advice on the sale of his business. He is considering an offer from a corporate purchaser who will buy the business assets from Chow Enterprises Ltd. (CEL) and continue the business. The purchase will take place on December 31 , 2022 and the selling price of the assets will be their fair market value at that time (see information below). He wants to understand how much tax he will pay on the sale and how much he would have available to invest after the sale of the business. Sidney is also wondering about the HST implications of the asset sale (optional). Mr. Chow purchased all the common shares of CEL from the company on incorporation in 2014 for $20,000. The corporation has a GRIP balance of $0. The company has a non-eligible RDTOH balance of $5,000 and a capital dividend accotant balance of $8,000. The following information on Chow Enterprises Ltd. has been prepared: In 2017, CEL acquired a business along with the goodwill noted above. The fair market value reflects the goodwill for the combined businesses, Sidney would like to know whether he should keep his corporation after the sale. He is also wondering if he should instead sell the shares of the corporation and wants to know what share price he should sell the shares for. The corporate tax rate for income eligible for the small business deduction is 4%. For income in excess of the small business limit the provincial tax rate is 12%. Sidney is in the top personal tax bracket. For the next meeting you agree that you will: (A) Assess the situation. (B) Identify the issues. (C) Analyze the issues. (D) Advise/recommend