PLEASE SHOW ALL WORK / EXPLAIN! Chi is one of a large number of shareholders...
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PLEASE SHOW ALL WORK / EXPLAIN!
Chi is one of a large number of shareholders of Pubco Ltd., a public corporation. She has received an offer from Taikit Inc., another public corporation, to exchange all of her shares in Pubco Inc., which are valued at $10,000, have a PUC of $1,000 and have an adjusted cost base to her of $6,000, in return for shares of Taikit Inc. The Taikit Inc. shares, also, have a value of $10,000 and a legal stated capital of $10,000. Which of the following amounts represents the adjusted cost base of the Taikit Inc. shares received by Chi under section 85.1?
- $1,000
- $6,000
- $9,000
- $10,000
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