XCorp and YCorp are each 100% owned by Xerxes. Xerxes has decided to amalgamate them withouttriggering tax by using Section 87 of the Income Tax Act. XCorp had 200 common shares with a PUCand ACB of $500, and a FMV of $5,000. YCorp has 100 common shares with a PUC and ACB of$700, and a FMV of $6,000.What is the PUC and ACB of the amalgamated company's shares?) 11,0006001,200500

Step 1 As in the given case, if any entity has subsequent investment in the other entity through…

Answered: O 11,000 600 O 1,200 500

Business

Accounting

O 11,000 600 O 1,200 500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

XCorp and YCorp are each 100% owned by Xerxes. Xerxes has decided to amalgamate them without
triggering tax by using Section 87 of the Income Tax Act. XCorp had 200 common shares with a PUC
and ACB of $500, and a FMV of $5,000. YCorp has 100 common shares with a PUC and ACB of
$700, and a FMV of $6,000.
What is the PUC and ACB of the amalgamated company's shares?
) 11,000
600
1,200
500

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The balance sheets of Butler, Incorporated and its 70%-owned subsidiary, Cassie Corporation, which Butler has owned for several years presented below: Cash Accounts Receivable (net) Inventory Plant & Equipment (net) Copyright Accounts payable Long-term Debt Noncontrolling interest Common stock, $1 par Retained earnings Additional information for 2024: 2024 $ 16,000 150,000 220,000 315,000 32,000 $ 733,000. $ 120,000 0 77,000 200,000 336, 000 $ 733,000 2 2023 $ 52,000 108,000 178,000 340,000 36,000 $714,000 $ 102,000 70,000 50,000 200,000 292,000 $714,000 • Butler & Cassie's consolidated net income was $100,000. . Cassie paid $10,000 in dividends. • There were no purchases or disposals of plant & equipment or copyright this year. Net cash flow from financing activities was ************
why is it 800,000-740,000 and not 800,000-720,000