Which one of the following describes the tax consequences on the transfer of assets to an individual's own registered retirement savings plan (RRSP) or tax-free savings account (TFSA)?

Multiple Choice

The assets would be deemed sold at their adjusted cost base (ACB) since the assets would still indirectly belong to the individual.

The assets would be deemed sold at their fair market value (FMV). The transferor would recognize any capital gains or losses.

Each individual asset would be deemed sold at their FMV. However, any capital losses would not be allowed.

The transferor could choose to report the transfer of each assets at any amount between its ACB and FMV.