Reconsider the Example Problem 16-1 in 16,060. REQUIRED Compute the cost of the consideration taken from
Question:
Reconsider the Example Problem 16-1 in ¶ 16,060.
REQUIRED
Compute the cost of the consideration taken from the corporation for the net assets transferred.
Data in Example Problem 16-1 in ¶ 16,060
Mr. Sam Moyer owns the following assets in a business that he wants to incorporate:
1Cost values for tax purposes used to describe the lowest limit of the elected transfer price range in Exhibit 16-1.
As fair market value consideration, he wants $70,000 in new debt, $35,000 in preferred shares and the balance in common shares to total the fair market value of the net assets transferred to the corporation. Also, the corporation will assume the existing debt of the proprietorship.
Step by Step Answer:
Introduction To Federal Income Taxation In Canada 2016-2017
ISBN: 9781554968725
37th Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett