The incorporation of capital and labor saving technological advance will cause the av
A.shift to the left
B.shift upward
C.shift downward
D.turn more sharply in the neighborhood of its minimum
A.shift to the left
B.shift upward
C.shift downward
D.turn more sharply in the neighborhood of its minimum
(ii) Assuming the relief in (i) is available, advise Sharon on the maximum amount of cash she could receive
on incorporation, without triggering a capital gains tax (CGT) liability. (3 marks)
(i) Mr Lee would subscribe RMB 70,000 yuan in cash and RMB 110,000 yuan in the form. of computer software. He should make the first payment of RMB 20,000 yuan in cash to the special account of the certified public accountant firm, and the remaining RMB 50,000 yuan plus the computer software would be contributed within one year upon the incorporation of the company.
(ii) Mr Wang would subscribe RMB 150,000 yuan in the form. of equipment and land use right and make all the capital contributions within six months upon the incorporation of the company.
(iii) Mr Chan would subscribe RMB 270,000 yuan in cash. The first payment of RMB 90,000 yuan should be made before the incorporation, the remaining RMB 180,000 yuan should be made in the third year upon the incorporation of the company.
Required:
Answer the following questions in accordance with the Company Law of China, and give your reasons for your answers:
(a) discuss whether the initial capital contributions made by the sponsors were in conformity with relevant provisions of law; (3 marks)
(b) discuss the total amount of capital contributions in currency; (3 marks)
(c) state whether the time arrangement of making capital contributions by the three sponsors respectively was in conformity with the relevant provisions of law. (4 marks)