Chi transferred a non-depreciable capital property to her wholly owned corporation, electing under subsection 85(1). The property was valued at $25,000 and had an adjusted cost base to Chi of $15,000. The property was mortgaged for $5,000. As consideration for the transfer, Chi received cash of $20,000 and a preferred share worth $1,000. The corporation assumed the mortgage. Which one of the following choices represents the elected transfer price that will result on the transfer and the adjusted cost base of the share, respectively?<\/p>
<\/p>
a.$26,000 and $5,000<\/p>
b.$15,000 and nil<\/p>
c.$25,000 and $24,000<\/p>
d.$25,000 and nil<\/p>", "transcribed_text": "", "related_book": { "title": "Income Tax Fundamentals 2013", "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516", "edition": "31st Edition", "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg", "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618", "see_more_uri": "" }, "free_related_book": { "isbn": "1018339019", "uri": "\/textbooks\/the-evidence-at-large-as-laid-before-the-committee-of-the-house-of-commons-respecting-dr-jenners-discovery-of-vaccine-inoculation-together-with-on-the-contravening-evidence-etc-1st-edition-978-1018339016-265487", "name": "The Evidence At Large As Laid Before The Committee Of The House Of Commons Respecting Dr Jenners Discovery Of Vaccine Inoculation Together With On The Contravening Evidence Etc", "edition": "1st Edition" }, "question_posted": "2024-06-28 04:44:28", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-shell-hunter-is-a-take-out-food-store-at", "description": "The Shell Hunter is a take- out food store at a popular beach resort. 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