Study Guides (258,624)
CA (124,965)
UW (5,928)
AFM (411)
AFM 461 (6)
Final

Chapter 15 summary notes Summary of Chapter 15: Corporate distributions, Windups and Sales. Really useful to look through before the exam

3 Pages
113 Views

Department
Accounting & Financial Management
Course Code
AFM 461
Professor
Stanley Laiken

This preview shows page 1. Sign up to view the full 3 pages of the document.
Retained earnings:
Capital dividend account non taxed portion of net capial gains
Undistributed surplus
Chapter 15: Corporate Distributions, Winding Ups and Sales
Paid up capital the amount which the corporation can return to the shareholder without it
being reported as a dividend to the shareholder
Definition 89(1)
PUC per share is an average of issue prices over time for a particular class
High-low shares shares with a lower PUC and high redemtion amount
PUC in a redemption of shares
Is computed at a corporate level
o ACB is computed at an individual shareholder level
Averaged among all shareholders of that clas based on shares held
When a share is disposed in SH perspective or redeemed in corporation perspective,
you must account for the deemed dividend that is subject to tax and is NOT part of
POD
o Proceeds PUC = deemed dividend
o Proceeds deemed dividend = adjusted POD
o Then take the adjusted POD ACB = capital gain
Capital Dividend account completes integration of corporat and personal income tax on
capital gains, is to be distributed tax free to corportion share holders
Only for PRIATE CORPORATIONS
Includes 5 components: 89(1)
o Add: Non-taxed portion of net capital gains (gains-losses) the OTHER half
of the tcg
o Add: Capital dividends received from another corporation
o Add: Non-taxable portion of the economic gain on disposition of eligible
capital property
o Add: Proceeds arising on death from certain life insurance policies received
by corporate net of cost basis of policies
o LESS: capital dividends paid
Private companies will have a nil balance on the first day they are a private company
o However: if the company was once public and then changes to private, it may
have a balance on the first day

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Retained earningsCapital dividend accountnon taxed portion of net capial gainsUndistributed surplus Chapter 15 Corporate Distributions Winding Ups and Sales Paid up capital the amount which the corporation can return to the shareholder without it being reported as a dividend to the shareholderDefinition 891PUC per share is an average of issue prices over time for a particular classHighlow sharesshares with a lower PUC and high redemtion amountPUC in a redemption of sharesIs computed at a corporate level o ACB is computed at an individual shareholder levelAveraged among all shareholders of that clas based on shares heldWhen a share is disposed in SH perspective or redeemed in corporation perspective you must account for the deemed dividend that is subject to tax and is NOT part of POD o ProceedsPUCdeemed dividend o Proceedsdeem
More Less
Unlock Document


Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit