Iskra Vremec and Colin McFee are experienced scuba divers who have spent many years in the salvage business. About a year ago, they decided to start their own company to recover dan1aged and sunken vessels and their cargoes off the east coast of Canada. They incorporated Atlantic Explorations Limited (AEL) on February 1, 2013. Iskra (president) and Colin (vice-president) each own 3 0% of AEL s shares. The remaining 40% of the shares were purchased by a group of 10 investors who contributed $50,000 each so that AEL could acquire the necessary equipment and cover other start-up costs. AEL carries on two types of activities. The first is a commercial salvage operation. The second is treasure hunting. To date, commercial salvage operations have generated all of AEL s revenues. The demand for these services is strong, and there are few competitors due to the unpredictable nature of the business and the long hours. Colin manages the commercial salvage operations. Customers pay in three instalments, including an upfront fee, a fee payable approximately midway through the contract, and a fee at the end once the items in question have been salvaged (found and brought to land). If the item is never found or AEL cannot bring the item to the surface and to land, then the final payment is not made. Iskra spends most of her time locating and recovering underwater artifacts and, where possible, sunken treasure. Her research shows that numerous vessels carrying gold, silver, and other