Kit and Skye Berzina would like to transfer their family business to their child, Winter. Winter does not have the required funds to purchase the company at this time. Which of the following might Kit and Skye consider in order to make the transfer possible without any immediate tax consequences?

Multiple Choice

• Sell their shares to Winter.

• Sell their shares to a third party who will then hire Winter.

• Reorganize their shares, exchanging their common shares for preferred shares of equal value, and then issue a new class of common shares to Winter for a nominal value.

• Sell the assets in the corporation that have appreciated in value.