Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected? a) $70,000 b) $30,000 c) SO d) $15,000

Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected? a) $70,000 b) $30,000 c) SO d) $15,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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