prob023 - Problem 23 (Past exam question: 36 minutes)...

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Problem 2 3 (Past exam question: 36 minutes) (Text: Ch. 4-6) Mr. Radical, a relatively new client, has decided to quit his present employment and to start up a computer consulting business. After discussing with him the various forms of business organization, Mr. Radical has decided on a corporate structure, Dude Ltd. with its first year ending June 30, 2008 but only being eight months long. You have been asked to draft a memorandum to Mr. Radical explaining the tax implications of the following specific transactions relating to the corporation and its shareholders. (a) Costs related to incorporation of the new company Legal fees $ 2,200 Accounting fees 1,100 Government fees 660 $ 3,960 (b) Both Mr. and Mrs. Radical will be common shareholders of the corporation. Mr. Radical will acquire 80% of the shares and Mrs. Radical will acquire 20%. However, since Mrs. Radical does not have adequate funds, Mr. Radical will lend her the necessary funds evidenced by promissory note with specific repayments
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This note was uploaded on 11/19/2010 for the course ACC 742 taught by Professor Sydor during the Spring '10 term at Ryerson.

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prob023 - Problem 23 (Past exam question: 36 minutes)...

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