Reference no: EM132990012
Question - For Ple Corporation (DFP) Die for Pie Corporation (DFP), located in Calgary, Alberta specializes in the production of pies and pastries and has been operating for the past 3 years. ass CCA Rate Buildings 4% Production machinery 20% Computers/Copiers/Printers 30% In 2020 DFP made the following fixed asset purchases:
March 12, 2020: 4 printers for $450 each May 18, 2020: 12 MAC laptop computers at $1,300 each.
July 15, 2020: Production machinery for $148,000.
September 3, 2020: Property (1 Main Street) $535,000 total purchase price (land $135,000 and buildings $400,000).
November 27, 2020: Production machinery for $386,000 (purchased with $86,000 cash plus a piece of property owned by DFP in trade).
The property had a building located on it worth $130,000 DFP also disposed of the following fixed assets during the year: February 18, 2020: Production machinery for $34,000. April 15, 2020: 7 IBM laptops at a price of $300 each 0030 Building (2 Backwater St) $175,000 (land $55,000 and buildings $120,000) non each 3, 2020: Property (1 Main Sun: 535,000 total purchase price (and $135,000 and buildings $400,000) - November 27, 2020: Production machinery for $386,000 (purchased with $88 000 cash plus a piece of property owned by DFP in trade). The property had a building located on it worth $130,000. DFP also disposed of the following fixed assets during the year. February 18, 2020: Production machinery for $34,000. April 15, 2020: 7 IBM laptops at a price of $300 each.
August 6, 2020: Building (2 Backwater St.) $175,000 (land $55,000 and buildings $120,000)
December 12, 2020: 2 Xerox copiers for $2,000 each Required 1. Complete the charts below with DFP's additions, dispositions, CCA Base, available CCA deduction and closing balance for each class of equipment. 2. Answer the question that follows the charts 3. Proceed to and complete Part Two of this question DFP's opening balances as follows: Computers / printers $44,350 Buildings $425,000 Production Machinery $600,000
Intercontinental Transportation Corp., a CCPC, has 75 shareholders. The corporation started the year with a balance of $109,256 in its Capital Dividend Account. In the current year, the corporation sold two pieces of property. The corporation sold one property it purchased four years ago - realizing a net proceeds of snosition (after fees and commissions) of $354,000, the ACB was $94,000. The second property the eston sold was purchased seven years ago and had an ACB of $112,000, that property realized net proceea crosition (after fees and commissions) of $618,238. The corporation also received $85,000 in Capital Dividends from another corporation while it also paid $72,000 in Capital Dividends out to another corporation during the year. In addition, the company received an insurance settlement as the beneficiary of a life insurance policy on a key person. The policy had an ACB of $126,000 and the proceeds paid to the corporation were $250,000. Just before the end of the year, the directors of the corporation decided to payout a Capital Divided that would leave a year ending balance in the CDA of $125,000. Outline (in the chart below) the additions and subtractions to the CDA that would satisfy the directors' request and answer the two questions that follow the chart. Font Famil Paragraph BIU,
What amount of Capital Dividend will each shareholder receive?
What amount of the Capital Dividend payment will be taxable to each shareholder?
What amount of Capital Dividend will each shareholder receive?