On January 18th of the current year, J Inc. acquired 85% of the shares of K Inc. from an arm’s length person. At that time, K Inc. owned two non-depreciable capital assets: Land (Value $250,000; Adjusted cost base $320,000) and Investment in X Inc. (Value $40,000; Adjusted cost base $35,000). What is the amount of the reduction required to the adjusted cost base of the assets?

Answer rating: 100% (QA)

When J Inc acquired 85 of the shares of K Inc K Inc became a controlled foreign affiliate CFA of J I... View the full answer