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This is Taxation Accounting of Canada. I really need an answer ASAP. Thanks so much for your help! Janet Limited a Canadian private company with
This is Taxation Accounting of Canada. I really need an answer ASAP. Thanks so much for your help!
Janet Limited a Canadian private company with a December 31 year end. The transactions which may follow involve Janet Limiteds capital dividend account.
- During 2008, the Company received a capital dividend of $46,000.
- During 2010, the Company sold a depreciable capital asset for cash proceeds of $325,000. At the time of sale, the capital assets cost was $250,000, and the UCC balance of the class that the asset was in was $150,000. It was the only asset in the class.
- During 2015, the Company sold a non-depreciable capital asset with an adjusted cost base of $140,000 for cash proceeds of $100,000.
- During 2018, the Company paid an eligible dividend of 25,000.
- During 2021, the Company also paid an ITA 83(2) capital dividend of $15,000.
Required: Determine the balance in the capital dividend account at December 31, 2021. You need to show your work and label it properly. If a particular item should not be included in the calculation, be sure to put NIL for that particular item.
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