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undefined Using ITA 85, Irene transfers non-depreciable capital property to a corporation at an elected value of $100,000. The property has an adjusted cost base
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Using ITA 85, Irene transfers non-depreciable capital property to a corporation at an elected value of $100,000. The property has an adjusted cost base of $100,000 and a fair market value of $180,000. As consideration, she receives a note (Boot) for $60,000, preferred shares with a fair market value and legal stated capital of $75,000 and common shares with a fair market value and legal stated capital of $45,000. Required: Determine the following amounts: adjusted cost base (ACB) of the preferred and common shares, the total PUC reduction amount, and paid-up capital (PUC) of the preferred and common shares. II II Note: Only for this question, write your inputs as a whole positive number. If your answer is Nil, write a number zero "O". Do not include any $, commas, brackets or negative signs. 1. Total ACB of Preferred shares... 1 2. Total ACB of all Common shares... 3. Total PUC reduction amount... 4. Total PUC for Preferred shares... 5. Total PUC for Common sharesStep by Step Solution
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