CoursHeroTranscribedText: Tia Kline, a resident of Canada, is the sole shareholder of Kl Inc. She plans to transfer four assets, which she owns, to Kl Inc. in exchange for cash and preferred shares of KI Inc. She wishes to receive the maximum amount in cash that she can receive and still defer the recognition of income for tax purposes on the transfer of the assets. Tia and Kl Inc. will jointly make a Section 85 election for each of the assets. The following is the details of the assets: FMV ACE UCC Inventory $ 260,000 $ 52,000 $ 0 Automobile 22,500 30,000 16,500 Patent 50,000 60,000 30,000 Customer list 100,000 0 0 $ 432,500 $ 142,000 $ 46,500 Required: For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, state the amount of cash consideration, and state the value of the preferred shares Ms. Kline should accept as consideration for the assets