The partners of ABC Partnership wish to incorporate the partnership’s asset. The partnership’s asset is land which was purchased about 11 years ago for $12,000. The fair market value of the land is now $48,000 and the land is capital property. On the transfer of the land to the corporation the partnership receives the following from the corporation:

One month after the transfer of the land to the corporation, the partnership is wound up.

REQUIRED

What is the position of Mr. Aleph who received a 2/3 share of each asset distributed by the partnership on the winding-up? The adjusted cost base of his partnership interest is $12,000.

Transcribed Image Text:

Cash Preferred shares (FMV) Common shares (FMV) Total $12,000 12,000 24,000 $48,000