Sandra is one of a large number of shareholders of Pubco Ltd., a public corporation. She has received an offer from Taikit Inc., another public corporation, to exchange all of her shares in Pubco Inc., which are valued at $10,000, have a PUC of $1,000, and have an adjusted cost base to her of $6,000, in return for shares of Taikit Inc. The Taikit Inc. shares, also, have a value of $10,000 and a legally stated capital of $10,000. Which of the following amounts represents the adjusted cost base of the Taikit Inc. shares received by Sandra under section 85.1?

A. $ZERO

B. $6,000

C. $1,000

D. $10,000

E. $9,000

F. None of the above.

Answer rating: 100% (QA)

ANSWER F None of the above The adjusted basis is calculated by taking the original cost adding the c... View the full answer