What is the amount of the reduction required

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Question - On January 18th of the current year, J Inc. acquired 85% of the shares of K Inc. from an arm's length person. At that time, K Inc. owned two non-depreciable capital assets: Land (Value $100,000; Adjusted cost base $130,000) and Investment in X Inc. (Value $25,000; Adjusted cost base $20,000). What is the amount of the reduction required to the adjusted cost base of the assets?

Reference no: EM133110047

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