income tax 2

Leo Silver is the sole shareholder Ag Co., owning only common shares which have an ACB and PUC of $200. Leo has successfully operated the business for twenty-five years, and the shares now have a value of $900,000. Leo would like to transfer the business to Leo's oldest child, Ronan, using Section 86. Which of the following would not apply in this transaction? Select one or more: a. Ronan will acquire newly issued common shares of Ag Co. for $200. b. Leo will receive preferred shares in Ag Co., redeemable for $900,000. c. Leo's new shares will have an ACB of $900,000. d. Ronan's shares will have an ACB of $200