Big Ltd., a Canadian public corporation owns 85% of the shares of Small Ltd. Both corporations have a December 31 year-end. The fair market value and tax value of the non-depreciable assets owned by Small total $420,000 and $120,000, respectively. The values have increased substantially from their $320,000 value at the time Big acquired Small. The shares of Small are currently worth $630,000 and have an ACB of $170,000. Big and Small amalgamated on January 1 of the current year. What is the ACB of Smalls non-depreciable assets in the corporation formed by amalgamation?

Charlie owns all the issued shares of X Ltd. These common shares have an ACB and PUC of $20,000 and are worth $700,000. Charlie would like to freeze his interest in the company at todays value so that future increases in value accrue to three employees. In the course of a reorganization of share capital, Charlie exchanged his common shares for preferred shares of X plus debt of $15,000. The preferred shares are redeemable for $685,000. The employees then acquired newly issued common shares of X for $90,000. What is the PUC of the preferred shares owned by Charlie?