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 31R is wound up into Q. What is the ACB of th 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 31R is wound up into Q. What is the ACB of th land in Q after the wind-up?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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?
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