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SWFT Corp Partner Estates Trusts

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 37P

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Question

How would the answer to '4' above change if:
a) the ACB of shares for Mr. Cauzone was $1,000, rather than $7,000?
b) the CSOH balance was $nil, not $5,000?

Question
Mr. Cauzone decided to wind-up his Company on 12/31/21. After selling all assets and
settling all liabilities, there's S122,000 of Cash left in the Company. Mr. Cauzone owns
all the shares of the Company with ACB of $7,000. He has come to you for advice and
provided the following balances:
PUC
CSOH
CDA
GRIP
$2,000
$5,000
$48,000
$24,000
Assuming Mr. Cauzone has no other income, calculate his Federal taxes payable /
refundable for 2021, based on above.

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