Alex incorporated his business which he would be the sole shareholder of his new company, ABC Limited. He plans to transfer four assets, which he owns, to ABC Limited in exchange for note payable and common shares of ABC Limited. He wishes to receive the maximum amount in note payable that he can receive in the future and still defer the recognition of income for tax purposes on the transfer of the assets. Alex and Limited Inc. will jointly make a Section 85 election for each of the assets. The following are the details of the assets:

Property FMV ACB UCC Equipment 22,000 50,000 18,000 Land 150,000 80,000 - Building 140,000 120,000 89,000 Goodwill 50,000 - - 362,000 250,000 107,000

Required:

1) For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, and state the amount of the gain/loss/profit that would be deferred if Section 85 was not elected.

2) For each of the four assets individually, state the amount of cash and the value of the common shares that Alex should accept as payment for the assets