Problem 3 Matt, a resident of Toronto, owns all the common shares of Beam Inc., a company he owns and operates. The adjusted cost base and paid-up capital of these common shares is $300,000 and the FMV is $900,000. In the course of a reorganization of capital in Beam Inc., the following two packages of consideration have been offered to Matt by Beam Inc. in exchange for his common shares: Package (a) Cash $ 10,000 Bond 80,000 FMV and LSC of Class A preferred shares 810,000 - Redeemable and retractable at FMV Package (b) Cash $500,000 FMV and LSC of Class A preferred shares 400,000 - Redeemable and retractable at FMV Matt would like your advice on which option is better for him and whether there is a better option. After the reorganization, common shares of the company will be issued to Matt's 30-year-old son for a nominal amount. Matt's son currently works full time for Beam Inc. Before you meet with Matt you want to: (A) Assess the situation. (B) Identify the issues. (C) Analyze the issues. (D) Advise/recommend