Rohit Kumar is the sole shareholder of ADC Ltd., a corporation with an October 31 year-end. ADC Ltd. produces paintings. Rohit started the corporation with an initial capital investment of $30,000 for which he received 1,000 shares. Rohit is a resident of Canada for tax purposes.

Rohit has let it be known that he wants to sell his business to enable him to build up a new art consulting business. As a result, Rohit has received two separate offers, both from individuals and both effective January 1, 2022.

Offer One - Jane Smith is willing to pay $1,000,000 for the shares of ADC Ltd.

Offer Two- John Doe is willing to buy the assets through an existing corporation that he owns. Johns offer is as follows:

Asset	Offer
Marketable securities	$14,000
Accounts receivable	60,000
Inventory	254,000
Land	372,000
Building	330,000
Equipment	12,000
Goodwill	180,000
Total offer	$1,222,000

Jane Smith & John Doe are residents of Canada for tax purposes

You have been given the following additional information:

1. Below are the details of the assets and liabilities of ADC Ltd.

Assets		Tax Value
Cash		$15,000
Marketable securities, adjusted cost base		26,000
Accounts receivable face value	$62,000
Less: allowance	6,000	56,000
Inventory, cost amount		230,000
Land, adjusted cost base		144,000
Building, UCC (capital cost is $235,000)		203,000
Equipment, UCC (capital cost is $65,000)		22,000
Goodwill, UCC Class 14.1 (cost is $38,000; acquired 2018)		33,500
Liabilities		Tax Value
Trade payables		47,000
bank loan		118,000

2. The paid-up capital of the outstanding shares in ADC Ltd. is $30,000

3. The capital dividend account of ADC Ltd. is $94,000 before any sale of assets under the offer above

4. The non-eligible refundable dividend tax on hand balance of ADC Ltd. was $18,000 on October 31, 2021

5. Rohit Kumar and John Doe have agreed to file an election under section 22 of the Income Tax Act for the transfer of the accounts receivable should they eventually agree to a deal

6. ADC Ltd. has the following tax rates:

a) 13% on active business income up to the small business deduction limit (no associated companies);

b) 40% on aggregate investment income (before the 1023% additional refundable tax)

7. The GRIP balance of ADC Ltd. was $0 on October 31, 2021

8. Rohit Kumar pays personal tax at the top marginal combined federal and provincial rate of 42.5% on cash dividends from the low-rate income of a Canadian-controlled private corporation and 50% on all other income

9. Rohit Kumar utilized all of his capital gains exemption on a previous sale of the shares of a qualified small business corporation.

REQUIRED: Advise Rohit Kumar as to which offer (sale of shares VS sale of assets) will provide him with the most after-tax funds

Please include a detailed response, all done on excel. Only attempt this question if you have knowledge in the subject (subject is tax accounting)