ABC Ltd. is winding up its operations. The Company has sold all of its assets...
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ABC Ltd. is winding up its operations. The Company has sold all of its assets and paid all of its liabilities, leaving a cash balance of $860,000. Since beginning operations, the Company has had a single shareholder who invested $100,000 to acquire all of its shares. The $100,000 is both the PUC and the adjusted cost base of the shares. All of the cash balance will be distributed to this shareholder. As the Company has a $40,000 balance in its capital dividend account, this amount will be treated as an ITA 83(2) capital dividend. What are the tax consequences of distributing the $860,000 to the corporation's only shareholder?
Complete the following requirements:
Round your answers to the nearest dollar amount. Do not input any signs. If your answer is zero, enter a number "0" or none.
1. ITA 84(2) Deemed Dividend........
2. ITA 83(2) Capital Dividend...........
3. ITA 88(2) Wind-up Dividend (before Gross-up application)........
4. Capital Gain...........
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