1. On January 1, 2020, the equipment, which is all in Class 8, had a UCC of $256,000. 2. The gain on the sale of equipment resulted from selling display fixtures and equipment with an original cost of $62,000 and a net book value of $27,500, for cash proceeds of $84,500. 3. A small group of new shares were issued during the year. The cost of printing these shares was $950 and was included in office expenses. 4. The interest income came from corporate bonds that had been held for four years and sold during the year. The bonds were purchased and sold at their maturity value. 5. Included in promotional expenses is a $2,800 membership fee to a local golf and country club. In addition, there were charges at this club for business meals and entertainment totaling $6,720. 6. The company provides cars for the principal shareholder and the manager of the company. Both of these individuals are considered to be employees of the company. Included in vehicle costs are lease payments of $500 per month, for 12 months, for each car, and a total of $11,000 in operating costs associated with providing these cars. While these individuals use the cars for some business purposes, it is estimated that over 80 percent of their usage is personal. 7. The dividend income of $24,000 was York’s share of a non-eligible dividend paid by Sarco Ltd., a 60 percent owned subsidiary company. As a result of declaring the dividend, Sarco received a total dividend refund of $5,000. None of the annual limit for the small business deduction was allocated to Sarco. 8. For 2019 York and Sarco’s combined ADJUSTED Aggregate Investment Income was $110,000. Their combined Taxable Capital Employed in Canada was $4,500,000 for 2019.
