Lily Haring owns a property that is depreciable property that is the last property in its...
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Lily Haring owns a property that is depreciable property that is the last property in its class. The capital cost is $623,000, the UCC is $229,663, and the FMV is $946,000. The depreciable prop- erty is used in a business. Lily will sell this property to a corporation that she will control. A joint election will be filed under ITA 85(1) in which the minimum elected amount will be chosen. She is considering receiving three different consideration packages, all of which total $946,000: Package One The company will pay her consideration consisting of a promissory note for $229,663 and preferred shares with a FMV of $716,337 Package Two The company will pay her consideration consisting of a promissory note for $100,000, preferred shares with a FMV of $100,000, and common shares with a FMV of $746,000. Package Three The company will pay her consideration consisting of a promissory note for $700,000 and preferred shares with a FMV of $246,000. Required: For each of the three packages, determine: . • The minimum elected amount that Lily can choose and the amount and type of income that will result. • The ACB of the consideration received. . • The PUC for the share consideration. Lily Haring owns a property that is depreciable property that is the last property in its class. The capital cost is $623,000, the UCC is $229,663, and the FMV is $946,000. The depreciable prop- erty is used in a business. Lily will sell this property to a corporation that she will control. A joint election will be filed under ITA 85(1) in which the minimum elected amount will be chosen. She is considering receiving three different consideration packages, all of which total $946,000: Package One The company will pay her consideration consisting of a promissory note for $229,663 and preferred shares with a FMV of $716,337 Package Two The company will pay her consideration consisting of a promissory note for $100,000, preferred shares with a FMV of $100,000, and common shares with a FMV of $746,000. Package Three The company will pay her consideration consisting of a promissory note for $700,000 and preferred shares with a FMV of $246,000. Required: For each of the three packages, determine: . • The minimum elected amount that Lily can choose and the amount and type of income that will result. • The ACB of the consideration received. . • The PUC for the share consideration.
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To determine the minimum elected amount amount and type of income ACB of consideration received and PUC for the share consideration for each of the three packages lets analyze them individually Packag... View the full answer
Related Book For
Transportation A Global Supply Chain Perspective
ISBN: 978-1133592969
8th edition
Authors: John J. Coyle, Robert A. Novak, Brian Gibson, Edward J. Bard
Posted Date:
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