Matt, a resident of Toronto, OwnEs all the communion shares of Beam Inc . The adjusted cost base* and paid - up capital of these shares is 5300, 000 and the FMTV is 5900, 000 . In the course of capital reorganization , the following two packages of consideration were offered in Exchange* for the shares " ( a) Cash . . . $ 10,000 Bond* FMTV and LSC Of Class A preferred shares ... $10,000 redeemable and retractable at FMTV ( b) Cash 550 0,000 FMTV and LSC Of Class A preferred shares ....... 400,000 redeemable and retractable at FMTV Matt would like you advice on which option is better for him . Before You meet with Matt you want to ! A. ASSESS the situation E . Analyze the major issues C. Conclude and advise