Case One Land with a cost of $ and a FMV of $ is sold to a corporation in exchange for $ in NSC and $ in preferred shares FMV and legal capital
Case Two Inventories with a FMV of $ and a cost of $ are sold in exchange for $ in NSC and $ in common shares FMV and legal capital
Case Three Depreciable property with a FMV of $ an ACB and capital cost of $ and a UCC of $ is sold for NSC of $ preferred shares with a FMV and legal capital of $ and common shares with a FMV and a legal capital of $
Required: For each of the three Cases provide the following information:
A The minimum and maximum elected amount under the provisions of ITA
B Assuming the minimum elected amount is chosen, the amount of capital gain or business income to be included in the income of the seller.
C Again assuming that the minimum elected amount is chosen, determine the ACB and PUC of the preferred share and common share consideration.
