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Posted on May 17, 2024

Thefollowingshareswere issuedinABCCo.: January1,Year1:Rowan Richardsonincorporated ABCCo.andreceived2,000commonsharesfor $2,000fromthecorporatetreasury. January1,Year2: PriscillaCruzreceived 500commonsharesinABCCo.for $1,000(fairmarketvalue) fromthecorporatetreasury. December31,Year3:CaseyGreerreceived1000preferredsharesofABCCo.for$5,000(fairmarketvalue)fromthecorporatetreasury. Required: Calculatethe paid-upcapital(PUC)ofthecommonsharesand thepreferredsharesofABCCo.attheendofYear3. CalculatethePUCandadjustedcostbase(ACB)of thesharesheldbyRowan,Priscilla,andCasey.

Thefollowingshareswere issuedinABCCo.:

January1,Year1:Rowan Richardsonincorporated ABCCo.andreceived2,000commonsharesfor $2,000fromthecorporatetreasury.
January1,Year2: PriscillaCruzreceived 500commonsharesinABCCo.for $1,000(fairmarketvalue) fromthecorporatetreasury.
December31,Year3:CaseyGreerreceived1000preferredsharesofABCCo.for$5,000(fairmarketvalue)fromthecorporatetreasury.

Required:

Calculatethe paid-upcapital(PUC)ofthecommonsharesand thepreferredsharesofABCCo.attheendofYear3.
CalculatethePUCandadjustedcostbase(ACB)of thesharesheldbyRowan,Priscilla,andCasey.

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