Class Notes (1,100,000)
CA (650,000)
UW (20,000)
AFM (1,000)
Lecture 2

Week 2.pdf


Department
Accounting & Financial Management
Course Code
AFM 461
Professor
Duane Kennedy
Lecture
2

This preview shows pages 1-3. to view the full 9 pages of the document.
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Proceeds of $200, cost of $100...
Capital gain of $100!
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Pay the $200 as a dividend, you have to
pay dividend on the tax.... But it's
capital gain originally so it should
only be taxed at 50%.!
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Capital dividend account (you don't get
a T5 for it) collected the amount of
tax free capital dividends you can
have.!
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Have to file an election to tell the
got how, much is in your capital
dividend account!
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There will be penalties so make sure
the numbers are right.!
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