HELP WITH PART C ONLY.

AP 16-2 (ITA 85(1)Mini Cases) In the following three independent cases a joint election is fled under ITA 85(1).

-Case One Depreciable property with a capital cost of $130,000, a UCC balance of $59,904, and FMV of $183,400 is sold to a corporation for consideration that consists of a promissory note of $140,000, preferred shares redeemable for $22,000, and common shares with a FMV of $21,400. The depreciable property is the only property in the class.

-Case Two Inventory with a tax cost of $87,000 and FMV of $120,000 is sold to a corporation for consideration that consists of a promissory note for $93,000 and preferred shares that are redeemable for $27,000. The inventory is not real property (land and buildings).

-Case Three Land with an ACB of $617,000 and FMV of $823,000 is sold to a corporation for consideration that consists of a promissory note of $72,000 and preferred shares redeemeable for $751,000.

Required: For each of the three cases provide the following information: A. The range of acceptable elected amounts. B. Assuming that the minimum elected amount determined in Part A is chosen, determine the additional income that will be included in the income of the seller. C. Again assuming that the minimum elected amount under Part A is chosen, determine the ACB of all consideration and the PUC of the share consideration. Your answer should indi-cate whether there are any mismatches of value that could result in either the application of the gifting rule (ITA 85(1)(e.2)) or a shareholder beneft (ITA 15(1)).