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Monique Tabor has a depreciable property that she wishes to sell to a new corporation using ITA 8 5 ( 1 ) . The property
Monique Tabor has a depreciable property that she wishes to sell to a new corporation using ITA The property has an ACB and capital cost of $ a UCC of $ and a FMV of $ The transfer will take place at an elected amount of $
Ms Tabor is considering the following alternative forms of consideration:
Alternative
One Two Three
Promissory Note $ $ $
Preferred Shares Nil
Common Shares Nil
Total $ $ $
All of the amounts in the preceding table are shown at their respective FMVs
Required:
A For each of the three alternatives, determine the ACB of the consideration received.
B For each of the three alternatives, determine the legal capital and PUC of the share consideration.
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