Under the provisions of ITA 85(1), Jason sold land that is capital property to a corporation...
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Under the provisions of ITA 85(1), Jason sold land that is capital property to a corporation in which he owned all of the shares. The ACB of the land was $120,000 and the FMV was $390,000. The elected amount was $120,000. As consideration, Jason received a promissory note for $60,000, preferred shares with a FMV of $210,000, and common shares with a FMV of $120,000. What will be the ACB of preferred share (first) and ACB of common shares (second) Under the provisions of ITA 85(1), Jason sold land that is capital property to a corporation in which he owned all of the shares. The ACB of the land was $120,000 and the FMV was $390,000. The elected amount was $120,000. As consideration, Jason received a promissory note for $60,000, preferred shares with a FMV of $210,000, and common shares with a FMV of $120,000. What will be the ACB of preferred share (first) and ACB of common shares (second)
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To determine the adjusted cost base ACB of the preferred shares and the common shares received by Ja... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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