Question

ABC Ltd. Opened a large bakery operation on January 1, 2018 and e bakery operation on January 1 2018 and picked a December 31 year end. Losses were experienced during the first year Type of Loss 2018 60000 80000 Non capital Capital Losses (100%) The owner sells all of the shares to a large public corporation on April 1 - 2019 The acquisition of control will result in a deemed year end. ABC prepared an income statement for the period January 1 2019 through March 31, 2019. The three month statement showed an additional business loss of 20,000 but no further capital losses, On March 31, 2019 the value of the company assets were as follows: Cost UCC FMV N/A AR 75000 150000 125000 90000 Land Building Fixtues 60000 250000 180000 50000 N/A 80000 60000 determine elected amounts determine non capital capital loss carry forwards

Answer 1

solution Company Assets realised @ fair sist march 2015 value. AR Land Building fixture Total elected amount through market fmu 60.000 250000 180000 50,000 s. 40,000 determination of losses to be capital capital carry and non forward. Total Elected amount - 5,40,000 Less: Noncapital loss (60,000) cpuring first year 2 Lessi- Capital losses1001) (80000) (During first year) Less: Three months additional loss (Revenue) (20,000) Be Balance Amt with Company 380000 As company still Thonetore there is capital and non owns some amount no carry forward capital losses.