Ms. Bimo transfers a non-depreciable capital property to a corporation in which all of the common shares are owned by her son. The property has a fair market value of $150,000 and an adjusted cost base of $35,000. Ms. Bimo transfers the property using an elected amount of $35,000 and the corporation issues her a note payable in the amount of $35,000 and preferred shares with a fair market value of $100,000. The ITA 85(1)excess amount (i.e. indirect gift)is:
A)$15,000.
B)$115,000.
C)$100,000.
D)$35,000.

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The Answer of Ms. Bimo transfers a non-depreciable capital property to a corporation in which all of the common shares are owned by her son. The property has a fair market value of $150,000 and an adjusted cost base of $35,000. Ms. Bimo transfers the property using an elected amount of $35,000 and the corporation issues her a note payable in the amount of $35,000 and preferred shares with a fair market value of $100,000. The ITA 85(1)excess amount (i.e. indirect gift)is:
A)$15,000.
B)$115,000.
C)$100,000.
D)$35,000.

Ms Bimo Transfers a Non-Depreciable Capital Property to a Corporation