Dundas Printing Inc. has been in business for the past 20 years. It has only been in the past three years that Bill Peach has taken over the operations from his father (who founded the company and is now retired). As a result of his new-found management freedom and changes in the marketplace. Bill has decided to expand his operations. One of the printing presses he needed to buy would have been too expensive if he had bought it new. so he found a used press at half the price. The drawback is that it will take some time to get the press into production, since it needs some repairs to put it into workable condition. However, Bill feels that this is still a good buy since it will meet his needs for the next five years, by which time new technology will probably make it obsolete and he will be forced to buy a new machine. Before his retirement, Bill's father drove a car that the company had purchased for his use at a cost of $45,000. The car was given to Bill for his use on his father's retirement. Bill has now decided that he is going to trade in this car for a car that he always wanted - a sports car that is going to cost $65,000 less the trade-in value of $25,000 for the old car. Bill promises to take you for a ride when it is delivered. In order to increase his market share, Bill bought all of the assets of one of his competitors. This not only gave him access to some important customers, it also allowed him to acquire some specialized equipment and skilled operators. The vendor had wanted to sell Bill the shares of his company, but Bill had convinced the vendor to sell him the assets, instead, including goodwill of $40,000. Bill would like your advice on the tax implications of his plans.
Use the introduction to federal income taxation in Canada 2023-2024 and Canadian income tax with regulations annotated 2023-2024