Harold Warren incorporated Warren Enterprises Ltd. at the beginning of the current year by making a...
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Harold Warren incorporated Warren Enterprises Ltd. at the beginning of the current year by making a $100,000 cash contribution for common shares. In addition, using the provisions of ITA 85(1), Harold contributed property with an ACB of $100,000 and a FMV of $150,000, and in return, he receives 25,000 common shares in the new corporation. The minimum amount is elected. The ACB of all of his common shares will be: Harold Warren incorporated Warren Enterprises Ltd. at the beginning of the current year by making a $100,000 cash contribution for common shares. In addition, using the provisions of ITA 85(1), Harold contributed property with an ACB of $100,000 and a FMV of $150,000, and in return, he receives 25,000 common shares in the new corporation. The minimum amount is elected. The ACB of all of his common shares will be:
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To calculate the adjusted cost base ACB of all of Harold Warrens common shares we need to consider b... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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