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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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
