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Timberline Private Ltd. has one shareholder who owns all 24,…

Posted byAnonymous August 5, 2026

Questions

Timberline Privаte Ltd. hаs оne shаrehоlder whо owns all 24,000 common shares. At the beginning of the year, Timberline has a Capital Dividend Account balance of $60,000, total common-share PUC of $288,000, and shareholder ACB of $216,000. During the year, Timberline realizes a capital gain of $120,000 and a capital loss of $20,000. It then pays a valid capital dividend of $80,000, returns $48,000 of paid-up capital without cancelling any shares, and finally redeems 6,000 common shares for $90,000. Assume a 50% capital-gains inclusion rate. Which statement correctly describes Timberline’s closing CDA and the consequences and remaining balances after the redemption?

Tags: Accounting, Basic, qmb,

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