Answered You can hire a professional tutor to get the answer.

QUESTION

Eric Lehnserr owns 100 percent of Magnus Products Ltd. The shares were originally issued in 1982 for $20,000. In 1986, they were acquired by Eric's...

Eric Lehnserr owns 100 percent of Magnus Products Ltd. The shares were originally issued in 1982 for $20,000. In 1986, they were acquired by Eric's father for $25,000. In 2002, Eric's father died and left the shares to Eric. At that time, they were deemed to have been disposed of for $100,000. On the terminal return for Eric's father, a capital gain of $75,000 was reported, and tax was paid on the taxable capital gain of $37,500. Eric wishes to transfer the shares, now valued at $250,000, to a holding corporation owned by himself, electing under Section 85(1) of the Income Tax Act. Magnus Products Ltd. has never paid dividends of any kind.

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question