The following transactions pertain to independent Canadian-controlled private corporations and their shareholders. Each transaction described below is separate and distinct from the other transactions. 

(a) Ethan Ltd. issued 150 preferred shares for $11,000 cash plus assets with a fair market value of $3,000. The paid-up capital account was increased by $100 per share, as a result of the share issue. 

(b) Maya Ltd. redeemed its preferred shares for $15,000. The shares have a paid-up capital of $11,000 and an adjusted cost base ("ACB") of $10,000. Assume that the corporation has no general rate income pool ("GRIP") balance at all relevant times.

Required:

For each of the above transactions, describe the effect:

(i) on the income of the shareholder (using the 17% gross-up and tax credit),

(ii) on the PUC (Paid-up capital) of the shares to the corporation after the transaction, and

(iii) on the ACB (The adjusted cost base) of the shares to the shareholder after the transaction.