What paid up capital of the hanson holdings shares will be

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Problem 1: Mary Hanson is holding 1,000 shares of Hanson Operations. They have an adjusted cost base and Paid Up Capital of $20,000. Their current fair market value is equal to $200,000. Electing under ITA 85 in a manner that will maximize tax deferral, the shares are transferred to Hanson Holdings Inc., in return for $8,000 in cash and 250 Hanson Holdings shares with a fair market value of $192,000. The Paid Up Capital of the Hanson Holdings shares will be:

Option 1: 12,000.

Option 2: $192,000.

Option 3: $200,000.

Option 4: $20,000.

Reference no: EM132701806

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