$17,850$ ASSIGNMENT PROBLEMS

Problem $1$

The following assets are to be transferred under section $85$ for consideration including common

shares plus boot as indicated below.

Only asset in class.

${?}^{*}$ Indefinite life.

For each of the assets transferred:

A$.$ Assess whether they qualify for transfer under section $85.$

B$.$ Determine the minimum possible elected amounts.

C$.$ Compute the effects on income.

D$.$ Indicate the maximum non$-$share consideration $($boot$)$ that can be taken and not create any

income.

E$.$ Determine what would happen if the non$-$share consideration on the land was $$170,000$ and on

the equipment was $$45,000.$

Use the following format:

Consideration