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Case One - Land with a cost of $423,000 and a FMV of $647,000 is...

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Accounting

Case One - Land with a cost of $423,000 and a FMV of $647,000 is sold to a corporation in exchange for $47,000 in NSC and $600,000 in preferred shares (FMV and legal capital).
Case Two - Inventories with a FMV of $87,400 and a cost of $63,200 are sold in exchange for $70,000 in NSC and $17,400 in common shares (FMV and legal capital).
Case Three - Depreciable property with a FMV of $124,000, an ACB and capital cost of $115,000, and a UCC of $52,992, is sold for NSC of $100,000, preferred shares with a FMV and legal capital of $10,000, and common shares with a FMV and a legal capital of $14,000.
Required: For each of the three Cases provide the following information:
A. The minimum and maximum elected amount under the provisions of ITA 85.(1)
B. Assuming the minimum elected amount is chosen, the amount of capital gain or business income to be included in the income of the seller.
C. Again assuming that the minimum elected amount is chosen, determine the ACB and PUC of the preferred share and common share consideration.

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