Question: Mr. X owns a convertible debenture with a face value of $100. The debenture can be converted into five common shares. Mr. X decides to

Mr. X owns a convertible debenture with a face value of $100. The debenture can be converted into five common shares. Mr. X decides to convert his bond into shares; on the date of conversion the shares have a fair value of $30 each. > What are the tax implications in the year the bond is converted

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