Mr. X transferred a track of land under sec 85 to Corp X. ACB of the land 100,000 and the FMV of the land is $3,000,000. In return, Mr. X received cash of 2,000,000 and common shares with a PUC and FMV of $1,000,000. Agreed Amount is $100,000 

Required a) Determine if the agreed amount is acceptable. b) What is the taxable capital gain with and without sec 85. c) Cost the consideration received. d) What is the PUC grind or PUC reduction.

Answer rating: 100% (QA)

To determine if the agreed amount is acceptable under section 85 of the Canadian Income Tax Act we n... View the full answer