Seminar.Week6- Feb. 14, 2011 - FMGT 4410 Seminar Questions...

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FMGT 4410 –Seminar Questions Week 6 Week of February 14, 2011 Question 1 Mr Goodby, a self-employed contractor, is married and has two children. His son, Harry, is 25 years old and his daughter, Martha, is 14. At the end of the current year, Mr Goodby owns the following property: 1. 5,000 shares of DRC Ltd., a Canadian public company with an ACB of $320,000 and current FMV of $573,000. 2. a rental building that is located on leased land. The building was acquired at a cost of $256,000; at the end of the current year, it has a UCC of $178,000 and a FMV of $386,000. 3. 100% of the voting shares of Goodby Construction Company, a CCPC. These shares have a cost of $227,000 and a current FMV of $452,000. Mr. Goodby is in poor health and is considering giving all or part of the properties to his spouse and/or two children. He has fully utilized his lifetime capital gains exemption. Required: Mr Goodby would like you to prepare a report on the tax consequences of him making a gift of each item to his wife or to either one of his children. Your report should include the resulting tax
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This note was uploaded on 07/29/2011 for the course FMGT 1000 taught by Professor Jen during the Spring '11 term at British Columbia Institute of Technology.

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Seminar.Week6- Feb. 14, 2011 - FMGT 4410 Seminar Questions...

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