Please show step by step solutions and calculations.

Mr$.$ CFE is the sole proprietor of a hardware store called, The CFE Shop. Mr$.$ CFE has

decided to incorporate the business but wishes to minimize any income inclusions on the

transfer of his business to the new corporation.

The CFE Shop has the following assets as at December $31,2021$:

Tax Value F$.$M$.$V$.$

Cash $ $22,000$ $ $22,000$

Accounts receivable $45,00045,000$

Inventory $($cost $ $44,000)39,50039,500$

Furniture $($cost $ $12,000)6,000($UCC$)8,000$

Building $($cost $ $75,000)45,000($UCC$)55,000$

Land $8,000($ACB$)30,000$

Goodwill $050,000$

As consideration for the transfer of the above assets, Mr$.$ UFE would like to take back

the maximum amount of shareholder debt $($boot$)$ with the balance of consideration being in the form of preferred shares.

REQUIRED: $($Show all supporting calculations$)$

$1.$ Determine the appropriate election transfer price under s$.85(1)$ for each of the assets which should be transferred under s$.85(1).$ Identify assets that should not be transferred using section $85.$

$2.$ Determine the total amount of both shareholder debt $($boot$)$ and preferred share

consideration for assets transferred using section $85$ that Mr$.$ CFE can accept without

adverse tax consequences.