In 2020, Mr. Richard Dix acquired a business location consisting of land with a brick store building located on it. The total price was $1,260,000, with $315,000 of this amount attributable to the land and $945,000 to the building. After carrying on the business of a grocery store on this property in 2020 and the first six months of 2021 as a sole proprietorship, Mr. Dix decides to incorporate the business. He will use ITA 85(1) to minimize the income tax consequences. He chooses an elected amount of $1,241,100 for the land and building. The details are as follows: Land $315,000 787,500 Building $926,100 1,102,500 Capital cost or UCC FMV Elected amount consideration: Debt Shares 315,000 472,500 926,100 176,400 On December 1, 2021, the corporation pays off the $721,350 of new debt. On December 28, 2021, Mr. Dix sells his shares in the corporation for$894,000. The shares of the corporation qualify for the capital gains deduction. Because of a previous sale of a qualified farm property, as of January 1, 2021, Mr. Dix only has $350,000 (taxable amount) of his capital gains deduction left. Required: A. Describe the income tax consequences of the transfer and calculate the ACB of the consideration received by Mr. Dix. B. Describe the income tax consequences of the debt being paid off and the share sale for Mr. Dix. In 2020, Mr. Richard Dix acquired a business location consisting of land with a brick store building located on it. The total price was $1,260,000, with $315,000 of this amount attributable to the land and $945,000 to the building. After carrying on the business of a grocery store on this property in 2020 and the first six months of 2021 as a sole proprietorship, Mr. Dix decides to incorporate the business. He will use ITA 85(1) to minimize the income tax consequences. He chooses an elected amount of $1,241,100 for the land and building. The details are as follows: Land $315,000 787,500 Building $926,100 1,102,500 Capital cost or UCC FMV Elected amount consideration: Debt Shares 315,000 472,500 926,100 176,400 On December 1, 2021, the corporation pays off the $721,350 of new debt. On December 28, 2021, Mr. Dix sells his shares in the corporation for$894,000. The shares of the corporation qualify for the capital gains deduction. Because of a previous sale of a qualified farm property, as of January 1, 2021, Mr. Dix only has $350,000 (taxable amount) of his capital gains deduction left. Required: A. Describe the income tax consequences of the transfer and calculate the ACB of the consideration received by Mr. Dix. B. Describe the income tax consequences of the debt being paid off and the share sale for Mr. Dix