A Canadian private corporation incurred the following transactions in previous years: In 2004, a capital asset was sold that resulted in a capital gain of $12,000 In 2005, a capital asset was sold that resulted in a capital loss of $4,200 In 2006, a capital dividend of $1,000 was paid In 2011, life insurance proceeds of $50,000 were received; the policy had an adjusted cost base of $10,000. In the current year, a capital dividend of $15,000 was received. Determine the current balance in the capital dividend account based on the above information.

A Canadian private corporation incurred the following transactions in previous years: In 2004, a capital asset was sold that resulted in a capital gain of $12,000 In 2005, a capital asset was sold that resulted in a capital loss of $4,200 In 2006, a capital dividend of $1,000 was paid In 2011, life insurance proceeds of $50,000 were received; the policy had an adjusted cost base of $10,000. In the current year, a capital dividend of $15,000 was received. Determine the current balance in the capital dividend account based on the above information.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 31CE

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