Under the provisions of ITA 85(1), Jason sold land that is capital property to a corporation...

  

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Under the provisions of ITA 85(1), Jason sold land that is capital property to a corporation in which he owned all of the shares. The ACB of the land was $120,000 and the FMV was $390,000. The elected amount was $120,000. As consideration, Jason received a promissory note for $60,000, preferred shares with a FMV of $210,000, and common shares with a FMV of $120,000. What will be the ACB of preferred share (first) and ACB of common shares (second) Under the provisions of ITA 85(1), Jason sold land that is capital property to a corporation in which he owned all of the shares. The ACB of the land was $120,000 and the FMV was $390,000. The elected amount was $120,000. As consideration, Jason received a promissory note for $60,000, preferred shares with a FMV of $210,000, and common shares with a FMV of $120,000. What will be the ACB of preferred share (first) and ACB of common shares (second)

Answer rating: 100% (QA)

To determine the adjusted cost base ACB of the preferred shares and the common shares received by Ja... View the full answer