User Account

All Pages

Determine the balance in the capital dividend account

Assignment Help Accounting Basics
Reference no: EM132611775

Question - Banana Ltd. is a Canadian private company with a December 31 year end. The transactions which follow involve Banana Ltd.'s capital dividend account.

During 2016, the Company received a capital dividend of $25,000.

During 2017, the Company sold a capital asset with an adjusted cost base of $156,000 for cash proceeds of $199,000.

During 2018, the Company sold a non-depreciable capital asset with an adjusted cost base of $120,000 for cash proceeds of $102,000.

During 2019, the Company sold goodwill for proceeds of $150,000. The goodwill had been internally developed and was not reflected in the Company's records. On January 1, 2019, there was a nil balance in the Company's Class 14.1 UCC.

During 2019, the Company paid an ITA 83(2) capital dividend of $12,500.

Required - Determine the balance in the capital dividend account at December 31, 2019.

Reference no: EM132611775

Questions Cloud

What is the hedge effectiveness : Company BCD wants to sell 5 million units of an asset in one month.
Two disadvantages of a hedging strategy using futures : A corn farmer hedges their corn price exposure with futures contracts. List two advantages and two disadvantages of a hedging strategy using futures contracts.
What are the forward price and the initial value : (a) What are the forward price and the initial value of the forward contract?
Calculate the npv of the project using fte approach : -If the cost of unlevered equity is 13%, calculate the NPV of the project using APV approach.
Determine the balance in the capital dividend account : During 2016, the Company received a capital dividend of $25,000. Determine the balance in the capital dividend account at December 31, 2019
What is the put premium : The risk-free interest rate is 0.053% per month. If the exercise price is $777, what is the put premium?
How much you have to borrow to establish a synthetic call : The risk-free interest rate is 0.03 per month. If the exercise price of a call option is $132.68, how much you have to borrow to establish a synthetic call?
What is the coupon amount if the bond is priced to sell : The bond is callable at $1,117. What is the coupon amount if the bond is priced to sell at par?
What is the stock price on the cum-dividend date : The stock price on the ex-dividend date is $175.43. If the tax rate on dividend incomes is 0.37, what is the stock price on the cum-dividend date?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd