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Monique Tabor has a depreciable property that she wishes to sell to a new corporation...

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Accounting

Monique Tabor has a depreciable property that she wishes to sell to a new corporation using ITA 85(1). The property has an ACB and capital cost of $450,000, a UCC of $225,000, and a FMV of $675,000. The transfer will take place at an elected amount of $400,000.
Ms. Tabor is considering the following alternative forms of consideration:
Alternative
One Two Three
Promissory Note $150,000 $375,000 $300,000
Preferred Shares 150,000300,000 Nil
Common Shares 375,000 Nil 375,000
Total $675,000 $675,000 $675,000
All of the amounts in the preceding table are shown at their respective FMVs.
Required:
A. For each of the three alternatives, determine the ACB of the consideration received.
B. For each of the three alternatives, determine the legal capital and PUC of the share consideration.

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