Exercise 1 Rex Cars has a Class 1 depreciable asset. The asset is to be transferred to a corporation using Section 85. Relevant information is shown below.

Class 1 FMV of Property $390,000 UCC of Class (Last Asset $134,000 in Class Cost of Property $191,000 FMV of Boot $246,000Class 8 FMV of Property $15,000 UCC of Class (Last Asset $10,000 in Class Cost of Property $27,000 FMV of Boot $11,000