Being Frank Ltd Adjusted Aggregate Investment Income
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Being Frank Ltd Adjusted Aggregate Investment Income
Frank Francis is the only shareholder of Being Frank Ltd. (“the Company”), a Canadian controlled private corporation.
The Company was formed in 2006, with an investment in common shares of $168,000. No additional shares have been
issued since that time. The Company has a taxation year that ends on December 31.
As he is now over 65 years of age and eager to start living the care-free life of a retiree, Frank is planning to sell his business
in any manner that he can. He is considering an offer that he has received from Melissa.
She has indicated that she would only buy the assets of the Company, not the shares. She is willing to pay a price that will
include an agreed-upon price for the goodwill. She has offered a purchase price, effective January 1, 2020, of $ 3,582,350
that reflects a fair market value for the business. She insists that from the sale proceeds, the Company must discharge all
of its current and other liabilities. She has agreed to file a joint ITA 22 election with respect to the Accounts Receivables.
Once the business assets are sold, it is Frank’s intention to wind up the company.
You are provided with the following statement of information about the Company’s assets:
Being Frank Ltd. Statement of Assets As at January 1, 2020 Accounting Net Book Value Tax Value Fair Market Value Purchase Price Cash $ 37,600 $ 37,600 $ 37,600 N/A Accounts Receivable 312,500 312,500 278,900 278,900 Inventories 623,400 623,400 676,250 678,250 Land 326,000 326,000 403,000 403,000 Building (Note One) 427,300 396,400 1,265,000 1,265,000 Equipment (Note Two) 326,500 285,400 297,600 297,600 Goodwill Nil Nil 624,000 624,000 Totals $2,053,300 $1,981,300 $3,582,350 $3,582,350 Note One. The brick and mortar original cost of this building $983,200.
Note Two. The Equipment had an original cost of $623,500.
At the same time that the Statement of Assets was prepared, a Statement of Equities was also drawn up as at January 1, 2020. This statement contained the following information regarding accounting and tax values:
Accounting Book Value Tax Value Current Liabilities $ 426,250 $ 426,250 Loan from Shareholder 186,400 186,400 Future Income Tax Liability 363,200 N/A Common Stock – No Par 168,000 168,000 Capital Dividend Account N/A 94,550 Retained Earnings 909,450 N/A Other Income Retained N/A 1,106,100 Totals $2,053,300 $1,981,300 In addition to the information included in the preceding statements, the following information about the Company is available:
On December 31, 2019, the Company has no RDTOH balance. There was no Adjusted Aggregate Investment Income earned in 2019.
Being Frank Ltd. is subject to the following tax combined federal and provincial income tax rates:
Active business income eligible for Small Business Deduction-15%
Active business income not eligible for the Small Business Deduction- 35%
Investment income- 50 2/3%
Frank’s personal all-inclusive income tax rate is 45% (this rate includes all dividend tax credits)
Required:
Part A. If Frank accepts Melissa’s offer, effective on January 1, 2020, in a concise schedule format, determine the total after-
tax cash amount that would be in the Company’s bank account and available to Frank pursuant to a wind-up of the
Company. This after-tax cash available schedule must include the impact of:
all the proceeds received from the sale of all the corporate assets;
the payment of all corporate and other debts;
the payment of all corporate income taxes; and
the receipt of any tax account refunds (15 marks)
Part B. After the sale of the assets, and in regard to the final wind up of the Company, assume that all the appropriate
elections or designations will be made to minimize personal income taxes. What will be the final after-tax amount that will?
be available to Frank pursuant to the total wind up of the Company? (5 marks)
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!