A sale of the assets of B Ltd. took place on January 2, 20X2. The assets and liabilities of B Ltd. at that time were as follows:

B Ltd. and the purchaser made a joint election under section 22 of the Income Tax Act with respect to the Accounts receivable.
An examination of the corporate tax return for the year ended December 31, 20X1 showed the following:
€¢ B Ltd. is a Canadian-controlled private corporation.
€¢ An allowance for doubtful accounts of $100,000 was claimed at the December 31, 20X1 year end.
€¢ The Paid-up capital of the corporation is $10,000.
€¢ The General rate income pool (GRIP) balance was nil.
€¢ The corporation has a Capital dividend account balance of $20,000 and a balance in its refundable dividend tax on hand (RDTOH) account of $9,000.
Determine the amount available for distribution to the shareholders after the sale of the assets.

Transcribed Image Text:

Fair Market Value S300,000 450,000 30,000 Inventory (cost $200,000) Accounts receivable (face value S600,000) Equipment (cost S100.000; UCC S70.000) Land (cost S400,000) Building (cost S300.000: UCC S230.000) Goodwill (cost SO: CEC SO) Liabilities 500,000 100,000 6,000