The following assets are to be transferred under section 85 for consideration including common shares plus boot

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The following assets are to be transferred under section 85 for consideration including common shares plus "boot" as indicated below:

** Indefinite life
REQUIRED
(A) Compute the minimum possible elected amounts.
(B) Compute the effects on income.
(C) Indicate the maximum "boot" that should be taken to maximize the deferral of taxation.

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Introduction To Federal Income Taxation In Canada

ISBN: 9781554965021

33rd Edition

Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett

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Question Posted: Apr 29, 2016 12:17 PM

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The following assets are to be transferred under section 85 for consideration including common shares plus boot

Question:

Fair Market ACB Capital Cost UCC/CEC Boot Value ECE Land Marketable securities Building* Equipment Furniture and fixtures Licence** S 75,000 65.000 95,000 50,000 10,000 100,000 $60,000 55,000 5,000 65,000 15,000 82,500 -S50,000 60,000 $ 70,000 55,000 40,000 45,000 5,000 60,000 15,000 7,000

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Land Marketable securities 2 Building 3 Equipment 4 Furniture and fixtures 5 Licence 6 1 a Minimum e...View the full answer

Introduction To Federal Income Taxation In Canada

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