Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected? a) $70,000 b) $30,000 c) SO d) $15,000

Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected? a) $70,000 b) $30,000 c) SO d) $15,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 52P

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