QUESTIONS A private limited company is considering converting to a close corporation. You are given the following information Balance Sheet at previous year end 31 Dec 1969 Balance Sheetst date of conversion 30 June 1990 R R Fored asset Fred 89ets As shareholding is 40 000 nat 125 000 As shareholang 40 000 not 123 000 Bs shareholding is 35 000 B's shareholding 35 000 C's shareholding is 32 000 investments 15 000 s shareholding 32 000 investments 15 000 0's shareholding is 28 000 os shareholding 28 000 Stocks 41 000 Share premium Share pretium Account 5 000 Stock 45 000 Account 5000 Non-distruatie Detros 24000 Non-distributable Oetton 22 000 reserves 15 000 Cash 5750 reserves 15000 Retained surplus 5 000 Retained surplus 7000 Cash B000 Overdrafts 30 000 Overdratos 25 000 Credors and Creators & provisions 18 000 provision 22 000 Shareholders for Dividends 6.750 Dividends 214 750 214 750 209000 209 000 R 97 000 12 000 40 000 21 500 R The fixed assets were valued at 100 000 The fixed assets were valued at The investments were valued at 12 000 The investments were valued at The stock was valued at 40 000 The stock was valued at The debtors were valued at 22 000 The debtors were valued at On conversion, it is agreed that the percentage interests are to be 4 25% C 24% 21% 100% ABcD (a) Show the amount of each member's interest (24) (b) Did the sharelsolders pay tax on the amount astebuted to the shareholders on conversion on Iuly 1990? (1) (25)