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In an ITA 86(1) estate freeze, a shareholder transfers 1,000 common shares with a fair market value (FMV) of $35,000 and a Paid-Up Capital (PUC)
In an ITA 86(1) estate freeze, a shareholder transfers 1,000 common shares with a fair market value (FMV) of $35,000 and a Paid-Up Capital (PUC) of $1,000 and receives new shares with a legal stated capital of $20,000 and non-share consideration (cash) of $15,000. The PUC of the new shares is
A.
$6,000.
B.
$20,000.
C.
$1,000.
D.
$0.
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