MGAC60H3 Final: Crib Sheet Final ch.15-19
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2 May 2011
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Puc based on capital contributed to corp. Amt returned to s/h excess of puc result in deemed dividend . Capital dividend account untaxed portion of half of taxable cap. gains. For ece, addition to cap div acct occurs at y/e, not at time of transaction. Untaxed portion of net cap gains + cap divs rcvd from other corps + untaxed portion of net gain on cec acct + net life insurance proceeds at death - capital divs paid. Amt of dividend equal to increase in corp"s puc. Div in kind corp paid and s/h rcve div equal to fmc of dist assets. Any dist made by corp in excess of puc and not elected as capital dividend deemed taxable div (s. 84) P of d less deemed div = adj proceeds less acb = capital gain/(loss) Assets liquidated, liabs paid off, cash distributed to shareholders. Or assets & liabs distributed directly to shareholders.
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