1A) When an individual die, there is a deemed disposition of all of his capital property at fair market value, without regard to his relationship to the beneficiary of his estate.

True or False.

Frank owns land with an adjusted cost base of $325,000 and a fair market value of $425,000. He gifts the land to his son for no consideration i.e., for $0. Which of the following statements is correct?

Question 6 options:

a)	Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $325,000.

b)	Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $325,000.

c)	Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $425,000.

d)	Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $425,000.