The following transactions involve the Logic Corporation's capital dividend account: In 2016, they sold a capital...

 

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The following transactions involve the Logic Corporation's capital dividend account: In 2016, they sold a capital asset with an adjusted cost base of $105,000 for cash of $129,000. In 2017, they sold a non-depreciable capital asset with an adjusted cost base of $91,000 for cash of $83,000. During the year ending December 31, 2018, the Company received a capital dividend of $10,600. On July 1, 2019, they sold goodwill for proceeds of $50,000. The goodwill had been internally developed and was not reflected in the Company's records. On January 1,2019, there was a nil balance in the Company's Class 14.1 UC. On October 31, 2019, the Company paid an ITA 83(2) capital dividend of $13,750. The appropriate election was made. Required Determine the balance in the capital dividend account at December 31, 2019. The following transactions involve the Logic Corporation's capital dividend account: In 2016, they sold a capital asset with an adjusted cost base of $105,000 for cash of $129,000. In 2017, they sold a non-depreciable capital asset with an adjusted cost base of $91,000 for cash of $83,000. During the year ending December 31, 2018, the Company received a capital dividend of $10,600. On July 1, 2019, they sold goodwill for proceeds of $50,000. The goodwill had been internally developed and was not reflected in the Company's records. On January 1,2019, there was a nil balance in the Company's Class 14.1 UC. On October 31, 2019, the Company paid an ITA 83(2) capital dividend of $13,750. The appropriate election was made. Required Determine the balance in the capital dividend account at December 31, 2019.

Answer rating: 100% (QA)

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