Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. during 2021, dortan ltd. acquires two businesses t

During 2021, Dortan Ltd. acquires two businesses that together constitute one business. The cost of...

60.1K

Verified Solution

Question

Accounting

During 2021, Dortan Ltd. acquires two businesses that together constitute one business. The cost of the first business includes a payment for goodwill of $243,000, while the cost of the second business includes a payment for goodwill of $317,000. Dortan Ltd. had no Class 14.1 balance as of January 1, 2021, and there were no other Class 14.1 transactions during the year. The company uses a December 31 taxation year end. A

In December, 2022, Shorehaus decides to downside its business and sells part of its business in two separate transactions to different persons. The first transaction results in a partial sale of goodwill for $187,000 and the second transaction results in a partial sale of goodwill for $307,000. Shorehaus always claims maximum CCA.

Determine the UCC balance at January 1, 2022 and determine the income tax consequences of the dispositions?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students