Christine Rue transfers a non-depreciable capital property to a corporation, using the provisions of ITA 85. The property has a fair market value of $342,000 and an adjusted cost base of $111,000. She uses an elected value of $111,000. As consideration she receives:
• Cash of $21,000.
• Preferred shares with a fair market value of $50,000.
• Common shares with a fair market value of $271,000.
Indicate the adjusted cost base and the PUC of the preferred and common shares that were issued to Christine.

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The Answer of Christine Rue transfers a non-depreciable capital property to a corporation, using the provisions of ITA 85. The property has a fair market value of $342,000 and an adjusted cost base of $111,000. She uses an elected value of $111,000. As consideration she receives:
• Cash of $21,000.
• Preferred shares with a fair market value of $50,000.
• Common shares with a fair market value of $271,000.
Indicate the adjusted cost base and the PUC of the preferred and common shares that were issued to Christine.

Christine Rue Transfers a Non-Depreciable Capital Property to a Corporation