Required: For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, state the amount of cash consideration, and state the value of the preferred shares Ms. Kline should accept as consideration for the assets. Inventory Automobile Patent Customer list FMV $ 260,000 $ 22,500 50,000 $ 100,000 432,500 $ ACB 52,000 30,000 $ 60,000 0 142,000 S UCC 0 16,500 30,000 0 46,500 $ Elected amount 0 $ Cash Preferred Shares 0 $ 0
Required: For each of the four assets individually, state the amount that should be elected as proceeds under Section 85 of the Income Tax Act, state the amount of cash consideration, and state the value of the preferred shares Ms. Kline should accept as consideration for the assets. Inventory Automobile Patent Customer list FMV $ 260,000 $ 22,500 50,000 $ 100,000 432,500 $ ACB 52,000 30,000 $ 60,000 0 142,000 S UCC 0 16,500 30,000 0 46,500 $ Elected amount 0 $ Cash Preferred Shares 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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