#6) (4 Marks) The following situations are independent of each other. However, all the corporations described...
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#6) (4 Marks) The following situations are independent of each other. However, all the corporations described below are Canadian- controlled private corporations and all shares are common shares of the corporations. A) Mr. Ole McDonald owns 100% of the shares in Senior Farms Ltd. Mr. McDonald's son Mark McDonald owns 60% of the shares in Junior Farms Ltd. Mark's wife Rhonda owns 40% of the shares in Junior Farms Ltd. Mark McDonald is 24 years old. Are Senior Farms Ltd and Junior Farms Ltd associated? Why or why not? B) Donald Dunn owns 100% of the shares in Dunn Ranch Ltd. Donald's daughter Darla Dunn owns 100% of the shares in NeverDunn Farms Ltd. Darla Dunn is 17 years old. Are Dunn Ranch Ltd and NeverDunn Farms Ltd associated? Why or why not? REQUIRED: Determine if the companies in each independent situation are associated. Give the reference from the Income Tax Act and an explanation to support if the companies are associated or a reason why the companies are not associated. #6) (4 Marks) The following situations are independent of each other. However, all the corporations described below are Canadian- controlled private corporations and all shares are common shares of the corporations. A) Mr. Ole McDonald owns 100% of the shares in Senior Farms Ltd. Mr. McDonald's son Mark McDonald owns 60% of the shares in Junior Farms Ltd. Mark's wife Rhonda owns 40% of the shares in Junior Farms Ltd. Mark McDonald is 24 years old. Are Senior Farms Ltd and Junior Farms Ltd associated? Why or why not? B) Donald Dunn owns 100% of the shares in Dunn Ranch Ltd. Donald's daughter Darla Dunn owns 100% of the shares in NeverDunn Farms Ltd. Darla Dunn is 17 years old. Are Dunn Ranch Ltd and NeverDunn Farms Ltd associated? Why or why not? REQUIRED: Determine if the companies in each independent situation are associated. Give the reference from the Income Tax Act and an explanation to support if the companies are associated or a reason why the companies are not associated.
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Are Senior Farms Ltd and Junior Farms Ltd associated Why or why not ANS WER No Senior Farms Ltd and ... View the full answer
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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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