Mr. Jay owns land with an adjusted cost base of $700,000 and an fair market value of $1,000,000. Case A. Mr. Jay sells this land to his spouse for its fair market value of 1,000,000. Required: (1) Describe the tax consequences (i.e., inclusion to his NIFTP) to Mr. Jay and the tax cost of the property (i.e., ACB) to his spouse after the sale assuming Mr. Jay does not elect out of ITA 73(1). (2) How would these results differ if Mr. Jay elects out of ITA 73(1)? (8 marks) Clearly indicate your answers for the following:

(1) Tax consequence to Mr. Jay ACB to his Spouse

(2) Tax consequence to Mr. Jay ACB to his Spouse