Dan Dash has decided to incorporate his retailing business. On July 1st he plans to transfer the assets of the business to Dash Inc., a corporation owned wholly by him, in exchange for a note of $535,000, being the fair market value of the assets.
The assets of the retailing business are as follows:

Dan also plans to transfer his shares of Grape Expectations, a publicly-traded company, to Dash Inc. He purchased the shares of Grape Expectations two years ago for $60,000. He plans to transfer them to Dash Inc. for $50,000, the estimated fair market value.
Required:
Prepare a memo for Dan outlining the tax implications of his plans and provide detailed recommendations as to how he can accomplish his goals in a more tax effective manner.

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FMV COST UCC/CEC S5,000 S 8,000 200,000 120,000 20,000 Accounts receivable Inventory an 60.000 Building Class 8 Equipment Goodwil1 Total 180,000 160.000 S100,000 50.000 100.000 70,000 40,000 0 S535.000 $408.000 S170.000