Under the provisions of ITA 85(1), Marx Stanislawski transfers a depreciable asset to a corporation in which he is the only shareholder. The asset has a fair market value of $500,000, a capital cost of $320,000 and a UCC of $180,000. Marx elects a transfer price of $180,000. As consideration, he receives cash of $140,000, and common shares with a legal stated capital of $360,000. What is the required PUC reduction for the common shares?
A)$320,000.
B)$220,000.
C)$180,000.
D)$40,000.

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The Answer of Under the provisions of ITA 85(1), Marx Stanislawski transfers a depreciable asset to a corporation in which he is the only shareholder. The asset has a fair market value of $500,000, a capital cost of $320,000 and a UCC of $180,000. Marx elects a transfer price of $180,000. As consideration, he receives cash of $140,000, and common shares with a legal stated capital of $360,000. What is the required PUC reduction for the common shares?
A)$320,000.
B)$220,000.
C)$180,000.
D)$40,000.

Under the Provisions of ITA 85(1), Marx Stanislawski Transfers a Depreciable