ABC Company wants to transfer a building to its subsidiary corporation, WWW Inc., on a tax deferred basis using section 85 of the Income Tax Act. Details of the building are as follows: Cost - $400,000 UCC - $ 250,000 FMV - $ 500,000 Required: What is your recommendation for each of the following: 1.The value to be assigned to any shares issued by WWW Inc. on the transfer of the building ? 2.The value to be assigned to any debt issued by WW Inc. on the transfer of the building ? 3.What is a price adjustment clause?

Answer rating: 100% (QA)

Recommendations for ABC Companys Transfer to WWW Inc 1 Value of Shares Issued by WWW Inc Under Section 85 of the Income Tax Act the transfer of the bu... View the full answer