> Real property owned by non-residents is considered eligible property ~ for purposes of section 85. O Consideration received on the transfer must include common and ~ preferred shares of the transferee corporation. W Hide question 11 feedback Answer a) is correct. For a transferor to be eligible for a rollover under subsection 85(1), the transferor must be a taxpayer as defined under subsection 248(1). In subsection 248(1), a taxpayer is any person whether or not liable to pay tax. A person is defined as an individual, a corporation, or a trust. Therefore, an eligible transferor includes a non-resident of Canada. Question 12 1/ 1 point Carol is using a section 85 election to transfer land and building that she holds personally into her wholly owned corporation. The land has a fair market value (FMV) of $220,000 and has an original cost of $80,000. The building has an FMV, original cost, and undepreciated capital cost (UCC) of $140,000, $70,000, and $50,000, respectively. Carol will take back the maximum amount of non-share consideration possible with the remainder of the consideration to be in the form of preferred shares with a fixed retraction value. She will elect values for the land and building that will not result in any taxes being paid at the time of the transfer. Based on the information provided, which of the following statements is correct? > The retraction value of the preferred shares will be $360,000. > The adjusted cost base (ACB) and paid-up capital (PUC) of the ~ preferred shares will be $130,000. v() The maximum amount of the non-share consideration is $130,000. () The retraction value of the preferred shares will be $210,000.
