Using the following Chapter $16$ formula, an example, and course content, complete Assignment $2$: Capital Dividend Account Basic Components: $+$ Non$-$taxable portion of net capital gains $+$ Capital dividends received from another corporation $+$ Life insurance proceeds on death received by corporation $-$ Capital dividends paid Capital Dividend Account $-$ Example $$ The following transactions involve the M & M Corporation's CDA. The company is a resident Canadian private corporation that uses a calendar$-$based December $31$ taxation year end. $$ In $2022,$ land that is capital property with an ACB of $$86,000$ was sold for cash of $$108,000.$ In $2023,$ the company received a capital dividend of $$8,200.$ On July $15,2024,$ the company sold a business. The sale included goodwill of $$43,000.$ The goodwill had not been purchased but had been developed internally. $$ On January $1,2024,$ the company's Class $14\mathrm{.}1$ UCC balance was nil. $$ In August $2024,$ the company realized an allowable business investment loss $($ABIL$)$ of $$12,000.$ On October $31,2024,$ the company paid a capital dividend of $$16,000.$ The appropriate election was made under ITA $83(2).$ Determine the balance in the CDA on November $1,2024.$ Solution $$ The balance in the CDA on November $1,2024,$ would be as follows: $2022$ capital gain on land $[(1/2)($$$22,000)]$ $$11,0002023$ capital dividend received $8,2002024$ sale of goodwill $[(1/3)($$$43,000-$ ACB nil$)]14,3332024$ tax$-$free part of an ABIL $(4,000)2024$ capital dividend paid $(16,000)$ CDA balance$-$November $1,2024$ $$13,533$ Course content: Capital Dividend Account $$ When a private corporation realizes a capital gain, the private corporation taxed on $2/3$ of the capital gain on or after June $15,2024.$ The other portion of the capital gain $(1/3)$ is added to the private corporation$$s capital dividend account, to be distributed tax free to the corporation$$s shareholders Assignment $2$ Julstan Multi$-$Enterprise Limited $($JML$)$ is a Canadian$-$controlled private corporation. It has operated with a December $31$ year$-$end. At its December $31,2018,$ tax year$-$end, the balance in its capital dividend account was $0,$ with no negative amounts carried for future offset. The following transactions occurred in the indicated taxation years thereafter. May $24,2019$: sale of shares held in a public corporation for proceeds of $$48,000$; the shares had cost $$72,000$ and JML paid a sales commission of $$2,000$ June $30,2020$: acquisition of an unlimited$-$life franchise for $$49,000$ August $20,2021$: received $$25,000$ as a dividend from the capital dividend account of a wholly owned subsidiary October $31,2022$: sold the following assets pertaining to the franchise Proceeds of Disposition Original Cost UCC Selling Costs Investments $ $36,000$ $$47,000$ n$/$a $$1,000$ Land $40,00026,000$ n$/$a $2,000$ Building $118,00092,00087,0006,000$ Equipment $12,00017,00010,500-$ Franchise rights $55,00049,00031,500-$ Goodwill $30,000---$ June $9,2023$: received $$100,000$ from a life insurance policy on the life of a key employee; the corporation had paid total premiums of $$19,000$ on the policy July $22,2024$: elected to pay a dividend of $$75,000$ out of the capital dividend account Required: Compute the balance in JML$$s capital dividend account at December $31,2024.$ Show all supporting calculations.