Problem 25 Matt, a resident of Toronto, owns all the common shares of Beam Inc. The adjusted cost base and paid-up capital of these shares is $300,000 and the FMV is $900,000. In the course of capital reorganization, the following two packages of consideration were offered in exchange for the shares: (a Cash . . $ 10,000 Bond . 80,000 FMV and LSC of Class A preferred shares . . . . . . . . . 1 1 810,000 - redeemable and retractable at FMV b) Cash $500,000 FMV and LSC of Class A preferred shares . 400,000 - redeemable and retractable at FMV Matt would like you advice on which option is better for him. Before you meet with Matt you want to: A. Assess the situation B. Analyze the major issues C. Conclude and advise