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Describe the adjusted cost base of the common shares

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Question: Under the provisions of ITA 85(1), Jason transferred a piece of land he held personally to a corporation in which he owned all of the shares. The adjusted cost base of the land was $120,000 and, at the time of the transfer, it had a fair market value of $390,000. The transfer took place at an elected value of $120,000. As consideration, Jason received a promissory note for $60,000, preferred shares with a fair market value of $210,000, and common shares with a fair market value of $120,000.

Which one of the following is the adjusted cost base of the preferred shares (first) and the adjusted cost base of the common shares (second)?

Reference no: EM132752814

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