Karl Young owns a non-depreciable capital asset with an adjusted cost base of $220,000 and a fair market value of $460,000. He intends to transfer the property to a corporation under the provisions of ITA 85, using an elected value of $220,000. As consideration he will receive a note for $110,000, preferred shares with a fair market value of $90,000, and common shares with a fair market value of $260,000. Indicate the adjusted cost base of the individual items of consideration received by Karl.

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The Answer of Karl Young owns a non-depreciable capital asset with an adjusted cost base of $220,000 and a fair market value of $460,000. He intends to transfer the property to a corporation under the provisions of ITA 85, using an elected value of $220,000. As consideration he will receive a note for $110,000, preferred shares with a fair market value of $90,000, and common shares with a fair market value of $260,000. Indicate the adjusted cost base of the individual items of consideration received by Karl.

Karl Young Owns a Non-Depreciable Capital Asset with an Adjusted