(4) The book value of the land is its original cost. This land is the property upon which the building is situated and represents the only site of the business operations. (5) The book value of the building and equipment represents original cost less accumulated financial accounting depreciation. The tax data related to the building are as follows: Original Cost UCC Building $60,000 $15,000 Equipment 80,000 35,000 Assume that Mr. Nicolas does wish to transfer the bank balance from his proprietorship to JON Ltd. in order to have some ready cash in the account of the new corporation. Required: a) Very briey explain to Mr. Nicolas the purpose of subsection 85(1) of the Income Tax Act, and the benefit to him of utilizing this subsection for the transfer of some or all of his proprietorship assets. Do not do any calculations; a qualitative explanation is all that is required. b) Indicate to Mr. Nicolas which asset(s) should not be transferred to JON Ltd. at all. Provide a brief explanation for each such asset. 1:) Indicate to Mr. Nicolas which asset(s) should be transferred to JON Ltd. but cannot or should not be transferred under subsection 85(1) and briey explain why. For each such asset, indicate the type and maximum amount of consideration that should be paid to Mr. Nicolas for the transfer. d) For each asset that should be transferred to JON Ltd. under subsection 85(1), indicate the elected transfer price, the maximum amount of non-share consideration (rounded to the nearest $100), as well as the value of preferred shares that should be received by Mr. Nicolas. e) What is Mr. Nicolas's cost of the preferred shares received for the transfer of his assets under subsection 85(1)? f) What is the PUC for tax purposes of the preferred shares that Mr. Nicolas receives for the transfer of his assets? g) What is the tax cost to JON Ltd. of each of the assets transferred to it under subsection 85(1)