Requirement A$.$ Describe the income tax consequences for Saura for making the election under ITA $85(1)$ and the subsequent sale of the common shares.

First, calculate the income tax consequences of selling the common shares. $($For entries with a $$0$ balance, make sure to enter $"0"$ in the appropriate input field.$)$

POD

Total Elected Amount

Less: FMV of NSC

ACB$-$Common Shares $($Residual$)$

Capital Gain

Inclusion Rate

Taxable Capital Gain

Required

A$.$ Describe the income tax consequences for Saura for making the election

under ITA $85(1)$ and the subsequent sale of the common shares.

B$.$ How do these results compare with the income tax consequences of simply

selling the building directly to the arm's$-$length person for $$2,200,000?$