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Individual G owns equipment that originally cost $50,000 and has an undepreciated capital cost of $35,000. G sells the equipment to a corporation for
Individual G owns equipment that originally cost $50,000 and has an undepreciated capital cost of $35,000. G sells the equipment to a corporation for its market value of $45,000. To avoid any tax on the transfer, a section 85 election is filed by G and the corporation and G receives the maximum amount of debt plus some shares. What is the PUC of the shares as a result of the section 85 election?
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