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Determine the FMV of the consideration package

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Reference no: EM133171616

Question - Mr. A transferred land to a corporation in which he owned all of the shares using the provisions of ITA 85(1). The ACE of the land was $150,000 and the FMV was $400,000. The elected amount was $150,000. As consideration, Mr. A received a promissory note for $80,000, preferred shares with a FMV of $200,000, and common shares with a FMV of $120,000.

Required -

1. Determine the FMV of the consideration package.

2. Determine the ACB of the preferred shares.

3. Determine the ACB of the common shares.

Reference no: EM133171616

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