Gamma transferred some equipment from his proprietorship to a corporation in which he  owned all of the shares. The capital cost of the equipment was $20,000, its UCC before  the transfer was $16,000 and it was valued at $40,000 at the time of the transfer. In order  to utilize some losses of the proprietorship that were about to expire, Gamma elected a  transfer price of $35,000 under subsection 85(1). Which one of the following amounts  represents the capital cost of the property to the corporation?\r\n
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(A)$16,000\r\n
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(B) $20,000\r\n
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(C) $27,500\r\n
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(D)$35,000\r\n
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Answer rating: 100% (QA)

D35000 Gamma transferred equipment from the sole proprietorship to the corp... View the full answer