Question 1: Tasty Bread Inc . opened a large bakery operation on January 1, 2017 . The Company's year end was established as December 31 . In addition to baking bread , the Company oversaw the wholesale distribution of its products , and operated a large retail outlet on the bakery premises The owners of the corporation had little experience in any aspect of baking or selling g bread and , therefore , during the first two years they experienced the following losses 2017 2018 Non - Capital Losses $63,500 $ 78,500 Capital Losses (100 %) 68,000 85,000 At the beginning of 2019 , the owners did not see any real hope for improved results under their own management and they began looking for new investors with more experience in the bakery industry . Their efforts met with success when , on April 1, 2019 , Dough Products Ltd acquired 72 % of the outstanding shares of Tasty Bread Inc . Dough Products is a large Canadian public company with a December 31 year end , and many years of successful operation in the industry. It is the intent of the new owners to inject additional capital and management expertise with a view to making Tasty's operations profitable within two years . As this acquisition of control will result in a deemed year end , Tasty prepared an Income Statement for the period January 1, 2019 through March 31, 2019 . This three -month Income Statement showed an additional business loss of $23,000 for the period , but no further capital losses On March 31, 2019 , the values of the Company's assets were as follows : Asset Cost UCC FMV Temporary Investments $ 53,000 N/A $ 23,000 Accounts Receivable 45,000 N/A 33,000 Land 275,000 N/A 420,000 Building 285,000 $270,000 320,000 Fixtures & Equipment 120,000 95,000 90,000 Vehicles 110,000 80.000 $7,000 Property of the John Molson Accounting Society - Do not Reproduce Without Permission