Question
XCorp and YCorp are each 100% owned by Xerxes. Xerxes has decided to amalgamate them without triggering tax by using Section 87 of the Income
XCorp and YCorp are each 100% owned by Xerxes. Xerxes has decided to amalgamate them without triggering tax by using Section 87 of the Income Tax Act. XCorp had 200 common shares with a PUC and ACB of $500, and a FMV of $5,000. YCorp has 100 common shares with a PUC and ACB of $700, and a FMV of $6,000.
What is the PUC and ACB of the amalgamated companys shares?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Technical Guide On Internal Auditing Including Internal Audit Survey 2014
Authors: Taxmann
2015th Edition
9350716615, 978-9350716618
