Question
White Inc. is a Canadian private corporation that incurred the following transactions in previous years: a) In 2016, a capital asset was sold to a
White Inc. is a Canadian private corporation that incurred the following transactions in previous years:
a) In 2016, a capital asset was sold to a non-affiliated corporation, which resulted in a capital gain of $82,000
b) In 2017, a capital asset was sold to a non-affiliated corporation, which resulted in an allowable capital loss of $7,000
c) In 2018, life insurance proceeds of $110,000 were received; the policy had an adjusted cost base of $15,000
d) In 2019, a capital asset was sold to Black Inc., a wholly-owned subsidiary, that resulted in a capital loss of $10,000
e) In 2020, a capital dividend of $80,000 and a non-eligible dividend of $20,000 were paid to the shareholders.
f) In the current year, White Inc., received a non-eligible dividend of $24,000 and a Capital Dividend of $17,000 from Purple Inc., another Canadian corporation.
Required: Determine the current balance in the capital dividend account for White Inc. based on the above information. Income tax reference: ITA 89(1). (White Inc's Capital Dividend Account Balance was nil prior to the year 2016)
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