What is the acb of the preferred shares

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Reference no: EM133921057

Problem

Under ITA Section 85, Roger Dial transferred a piece of land he held personally to a Canadian-controlled private corporation that he wholly-owned. The adjusted cost base (ACB) of the land was $140,000. At the time of transfer, the fair market value (FMV) of the land was $390,000. The ITA Section 85 transfer took place at an elected value of $140,000. As consideration, Roger received cash of $60,000, preferred shares with a FMV of $210,000, and common shares with a FMV of $120,000. Get the instant assignment help. What is the ACB of the preferred shares (first number) and the ACB of the common shares (second number)?

Reference no: EM133921057

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