Subtract.68,551 – 8140

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

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?

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?

In the following three independent cases a joint election is filed under ITA 85(1). Case OneDepreciable property with a capital cost of $135,000, a UCC balance of $74,200, and FMV of $210,500 is sold to a corporation for consideration that consists of a promissory note of $155,000, preferred shares redeemable for $28,000, and common shares with a FMV of $27,500. The depreciable property is the only property in the class. Case TwoLand with a tax cost of $717,000 and FMV of $923,000 is sold to a corporation for consideration that consists of a promissory note for $103,000 and preferred shares that are redeemable for $720,000 and common shares that are redeemable for $100,000. The inventory is not real property (land and buildings). A. The range of acceptable elected amounts. B. Assuming that the minimum elected amount determined in Part A is chosen, determine the additional income that will be included in the income of the seller. C. Again assuming that the minimum elected amount under Part A is chosen, determine the ACB of all consideration and the PUC of the share consideration.  Answer Skeleton:  Case 1 & Case 2 A) Range of Elected amounts = ? Floor  = ? Ceiling = ? B)  Assume minimum elected Capital gain? IF YES Below (IF NO LEAVE BLANK) POD =? ACB =? CG / Business income =? Inclusion =? TCG =? C) Minimum elected amount Determine ACB of all Consideration PUC of Share consideration ACB Consideration  Elected Amount =? LESS  FMV  of NSC =? ACB of Preferred Shares  =? PUC Reduction  Increase in legal capital =? LESS  Elected Amount  =? Over the FMV of NSC =? PUC Reduction  = ? PUC of Preferred Shares =? PUC of Common Shares =?

If you do not elect out of S.73(1) the original spouse or the “Transferor” will have the dividends be attributed back to him/her if applicable. 

Michael and Sofia Bennett were married in 2015. Sofia owns all shares of Bennett Manufacturing Ltd., a private corporation in which she is actively involved on a continuous and ongoing basis. In late 2024, citing irreconcilable differences, the couple divorced. As part of the settlement agreement, Sofia was required to have Bennett Manufacturing Ltd. issue a separate class of shares to Michael. In 2025, as required by the terms of the divorce settlement, taxable dividends of $68,000 were declared and paid to Michael. Is the dividend TOSI? IF so, which exception? 

Fire can use energy, consume oxygen, and interact with its environment. Why is it not alive?

If you were to combine all the ecosystems on the planet, you would obtain the ________.

A certain form of cancer is known to be found in women over 60 with probability 0.07. A blood test exists for the detection of the disease, but the test is not infallible. In fact, it is known that 10% of the time the test gives a false negative (i.e., the test incorrectly gives a negative result) and 5% of the time the test gives a false positive (i.e., incorrectly gives a positive result). If a woman over 60 is known to have taken the test and received a favorable (i.e., negative) result, what is the probability that she has the disease?