Using Section 85 of the Income Tax Act, Jason Goorwah transfers non-depreciable property to a corporation at

Question:

Using Section 85 of the Income Tax Act, Jason Goorwah transfers non-depreciable property to a at an elected value of $6,000. The property has an adjusted cost base of $6,000 and a fair market value of $17,000. As consideration he receives a note for $1,000, preferred shares with a fair market value of $2,000, and common shares with a fair market value of $14,000.
Required:
Determine the adjusted cost base (ACB) and paid-up capital (PUC) of the preferred shares and the common shares received by Jason. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...