Q Ltd, a Canadian corporation, owns 100% of the shares of R Ltd. The R shares have an ACB of $80,000 and are now worth $200,000. R's only asset is land having a cost of $50,000 and a current value of $200,000. The land was worth $80,000 when Q purchased R's shares. Both corporations have September 30 year-ends. On October 31 R is wound up into Q What is the ACB of the land in Q after the wind-up?

Q Ltd, a Canadian corporation, owns 100% of the shares of R Ltd. The R shares have an ACB of $80,000 and are now worth $200,000. R's only asset is land having a cost of $50,000 and a current value of $200,000. The land was worth $80,000 when Q purchased R's shares. Both corporations have September 30 year-ends. On October 31 R is wound up into Q What is the ACB of the land in Q after the wind-up?

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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