Calamari Inc. has transferred the following three assets to Squid Co., a Canadian controlled private corporation, under
Question:
Calamari Inc. has transferred the following three assets to Squid Co., a Canadian controlled private corporation, under section 85 of the Income Tax Act.
Building Land
Adjusted cost base (ACB) $230,000 $70,000
Fair market value $220,000 $150,000
Undepreciated capital cost (UCC) $120,000 N/A
Sale price $220,000 $150,000
Cash received $100,000 $100,000
Shares received $120,000 $50,000
Determine the following amounts:
A) The minimum amount that Calamari may elect to transfer each asset in the rollover based on the information provided
B) The ACB of the shares received by Calamari following the rollover
C) The PUC of the shares received by Calamari following the rollover
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold