Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following transactions involve the Swingline Corporation's capital dividend account: In 1987, they sold a capital asset with an adjusted cost base of $98,000, for
The following transactions involve the Swingline Corporation's capital dividend account: In 1987, they sold a capital asset with an adjusted cost base of $98,000, for cash of $123,000, resulting in a $12,500 [(1/2)($25,000)] taxable capital gain. In 1996, they sold a capital asset with an adjusted cost base of $86,000, for cash of $98,000, resulting in a taxable capital gain of $9,000 [(3/4)($12,000)]. During the year ending December 31, 2018, the company received a capital dividend of $8,200. On July 1, 2019, the company received tax-free life insurance proceeds of $25,000. On October 31, of the current year, the company paid an ITA 83(2) capital dividend of $16,000. The appropriate election was made. Required: Determine the balance in the Capital Dividend Account as at December 31 of the current year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started