Mr. Patel transfers land with an adjusted cost base of $75,000 and a fair market...
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Accounting
Mr. Patel transfers land with an adjusted cost base of $75,000 and a fair market value of $200,000 to a new CCPC in which he is the sole shareholder. He takes back consideration which includes debt with a fair market value of $140,000 and redeemable preferred shares with a fair market value and legal stated capital of $160,000. The elected transfer price is $200,000. The immediate increase in Mr. Patels income would be:
$0
$100,000
$112,500
$162,500
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