Bridget transferred a piece of land she held personally to her wholly owned corporation using the provisions of ITA 85. The land had an adjusted cost base of $150,000 and a fair market value of $250,000 at the time of transfer. The property was mortgaged for $50,000. As consideration for the transfer, Bridget received cash of $200,000 and preferred shares with a legal stated capital of $10,000. The corporation assumed the mortgage. Which one of the following is the elected transfer price (first)and the adjusted cost base of the preferred shares (second)?
A)$250,000 and Nil
B)$250,000 and $240,000
C)$260,000 and $50,000
D)$150,000 and Nil

Question

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The Answer of Bridget transferred a piece of land she held personally to her wholly owned corporation using the provisions of ITA 85. The land had an adjusted cost base of $150,000 and a fair market value of $250,000 at the time of transfer. The property was mortgaged for $50,000. As consideration for the transfer, Bridget received cash of $200,000 and preferred shares with a legal stated capital of $10,000. The corporation assumed the mortgage. Which one of the following is the elected transfer price (first)and the adjusted cost base of the preferred shares (second)?
A)$250,000 and Nil
B)$250,000 and $240,000
C)$260,000 and $50,000
D)$150,000 and Nil

Bridget Transferred a Piece of Land She Held Personally to Her