No. 6- Jane Lim owns all of the shares of J Ltd., ntrolled private corporation with investments ir nadian public companies. Her spouse owns all of t Ltd., a Canadian-controlled private corporation, sh. They have decided to have M Ltd. purchase th td., to provide Jane with the cash required to tak apother investment opportunity The shares of
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- Individual C owns all of the shares of Cee Ltd., a Canadian-controlled private corporation holding investments in marketable securities. Individual D owns all of the shares of Dee Ltd., a Canadian-controlled private corporation. Dee Ltd. purchased all of the shares of Cee Ltd. from C for $900,000 cash. The Cee Ltd. shares have a PUC and ACB of $100,000. C and D are sisters. Determine C's taxable income from the sale of shares to Dee Ltd. The balance in the GRIP account is nil $ CTia Kline, a resident of Canada, is the sole shareholder of KI Inc. She plans to transfer four assets, which she owns, to Kl Inc. in exchange for cash and preferred shares of KI Inc. She wishes to receive the maximum amount in cash that she can receive and still defer the recognition of income for tax purposes on the transfer of the assets. Tia and KI Inc. will jointly make a Section 85 election for each of the assets. The following chart outlines the details of the assets. Inventory Automobile Patent Customer list FMV ACB UCC $ 260,000 $ 22,500 52,000 $ 30,000 50,000 100,000 60,000 16,500 30,000 Required: $432,500 $ 142,000 $ 46,500 For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, state the amount of cash consideration, and state the value of the preferred shares Ms. Kline should accept as consideration for the assets. FMV ACB UCC Elected amount Cash Preferred Shares Inventory $ 260,000 $ 52,000 0…Tia Kline, a resident of Canada, is the sole shareholder of KI Inc. She plans to transfer four assets, which she owns, to KI Inc. in exchange for cash and preferred shares of KI Inc. She wishes to receive the maximum amount in cash that she can receive and still defer the recognition of income for tax purposes on the transfer of the assets. Tia and KI Inc. will jointly make a Section 85 election for each of the assets. The following is the details of the assets: FMV UCC $ 230,000 115,000 10,350 46,000 АСВ $ 46,000 80,500 34,500 20,000 $ 181,000 Land Building Equipment 57,500 9,200 17,575 $ 84,275 Goodwill $ 401,350 Required: For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, state the amount of cash consideration, and state the value of the preferred shares Ms. Kline should accept as consideration for the assets Elected Preferred FMV ACB UCC Cash amount Shares Land $ 230,000 $ 46,000 Building 115,000…
- X is a resident citizen, realized the following gains from the sale ofassets: Capital Gains on sale of shares of a domestic corporation nottraded thru PSE (Selling price of P1,120,000, Cost of P1,000,000) -P120,000 Gain on sale of shares of a domestic corporation sold in the PSE (Selling Price of P115,000, Cost of P90,000) - P25,000; Gain on sale of real property located in the Philippines (Selling price P2,000,000, FMV P3,000,000;)- P500,000; Gain on sale of real property abroad (Selling price of P2,000,000, Cost of P1,700,000) - P300,000; How much is the total capital gains tax?Tia Kline, a resident of Canada, is the sole shareholder of KI Inc. She plans to transfer four assets, which she owns, to KI Inc. in exchange for cash and preferred shares of KI Inc. She wishes to receive the maximum amount in cash that she can receive and still defer the recognition of income for tax purposes on the transfer of the assets. Tia and KI Inc. will jointly make a Section 85 election for each of the assets. The following is the details of the assets: Land Building Equipment. Goodwill Land Building Equipment Goodwill FMV ACB $ 230,000 $ 46,000 $ 115,000 10,350 46,000 $ 401,350 $ 181,000 $ 84,275 Required: For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, state the amount of cash consideration, and state the value of the preferred shares Ms. Kline should accept as consideration for the assets $ FMV $ 230,000 $ 115,000 10,350 46,000 401,350 80,500 34,500 20,000 ACB 46,000 80,500 $ 34,500 UCC 0…Lee owns 100% of the shares in Aerodynamic Limited. Lee’s wife, Sandy, owns 100% of the shares in Biodynamic Limited. Are Aerodynamic and Biodynamic associates? If Sandy doesn't have any shares, does Sandy associated with Aerodynamic Limited?If Lee also has a family trust of which he is the settlor. Is Aerodynamic Limited and the Trust associated?
- Tia Kline, a resident of Canada, is the sole shareholder of KI Inc. She plans to transfer four assets, which she owns, to KI Inc. in exchange for cash and preferred shares of KI Inc. She wishes to receive the maximum amount in cash that she can receive and still defer the recognition of income for tax purposes on the transfer of the assets. Tia and KI Inc. will jointly make a Section 85 election for each of the assets. The following chart outlines the details of the assets. UCC FMV $ 260,000 $ 22,500 50,000 100,000 ACB 52,000 30,000 60,000 0 $ 432,500 $ 142,000 $ Inventory Automobile Patent Customer list Inventory Automobile Patent Customer list $ Required: For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, state the amount of cash consideration, and state the value of the preferred shares Ms. Kline should accept as consideration for the assets. $ FMV 260,000 $ 22,500 50,000 100,000 432,500 $ ACB $…51. Mr. Redmare, a resident citizen of the Philippines, had shares of stock of a domestic corporation held as investment that he acquired for a purchase price of P250,000, excluding acquisition expenses of P7,500. The shares were not listed and traded in the local stock exchange. He sold the shares directly to the buyer for a selling price of P500,000 when the FMV was P450,000. He incurred selling expenses of P13,500. How much is the capital gains tax? Your answerTammi purchases stock in Vivaldi Corporation. Vivaldi Corporation later encounters legal issues and faces significant legal claims. As a shareholder, Tammi's liability is: a. Just like that of partners b. limited to $50,000 Oc. unlimited d. limited to her investment in the stock
- Sylvia is the sole shareholder of Strained Ltd., a taxable Canadian corporation. Sylvia transferred a non-depreciable capital property having adjusted cost base of $40,000 and a fair market value of $50,000 to Strained Ltd. in exchange for the following package of consideration. Cash $3,000 Debt 2,000 Preferred shares (FMV and legal stated capital) 15,000 Common Shares (FMV and legal stated capital) 30,000 Total 50,000 Sylvia and Strained Ltd. made a joint election under section 85, electing a transfer price of $40,000. The cost to Sylvia of the common shares received as consideration is: Select one: A) $35,000 B) $23,000 C) $23,333 D) $20,000Brett and Illain formed a new Corporation by transferring the following assets in exchange for stock:▪ Brett transferred: Property subject to a 70,000 mortgage; FMV $1,000000, Basis 500,000. In exchange, she received 200 shares of Stock and relief of the mortgage liability. ▪ Illain transferred: Inventory with a Basis of 15,000 and FMV 150,000. Required:a. What is Brett’s basis in the stock she received b. What is Brett’s recognized gain/loss5. Five unrelated U.S. individuals own all of the shares of Popping, a corporation organized and operating fully in the country Vivace. Mariam, one of the shareholders, asks you whether the income from Popping will be taxed to her immediately as earned; she believes the entity is classified as "a controlled foreign corporation (CFC)." Explain how the Federal income tax law applies to the profits earned by Popping. Use the correct Federal income tax terminology in your comments.