On April 1, 2025, Delgado Inc. loans $84,000 to its principa…
On April 1, 2025, Delgado Inc. loans $84,000 to its principal shareholder, Matthew Delgado, in order to finance personal expenditures. Delgado Inc. has a June 30 taxation year end. The loan is interest-free. Assume that throughout the time that the loan is outstanding the relevant prescribed interest rate is 5%. Determine the income tax consequences to Matthew if the loan is repaid on January​ 1,2026
Read DetailsMs. Koh sells a non-depreciable capital property with an FMV…
Ms. Koh sells a non-depreciable capital property with an FMV of $102,000 and an ACB of $44,700 to Koh Inc. In consideration, she receives P-note of $44,700 and shares with an FMV of $57,300 for a total of $102,000. The ITA 85(1) elected amount is $44,700. Which of these statements is correct?
Read DetailsLeo Tintendo sold machinery to a corporation in which he is…
Leo Tintendo sold machinery to a corporation in which he is the controlling shareholder. He elected to use ITA 85(1). The FMV of the equipment is $20,500, and its UCC is $15,400. The elected amount is $15,400. As consideration, Leo received a $15,370 promissory note and 2,565 preferred shares with a redemption amount of $2 each. What is the ACB of the preferred share consideration?
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