At her death on August 1 of the current year, Nancy Mori owned stocks with an adjusted cost base of $11,000 and a fair market value of $20,000, and a term deposit of $30,000. She also owned a building that had a cost of $98,750, a fair market value of $110,000, and a UCC of $70,000. She bequeaths all of her assets to a spousal trust. Her Taxable Income at death arising from the dispositions is nil.

Question

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The question states that Nancy's taxable income at death arising from the dispositions is nil, implying that there were no gains or losses that would generate taxable income. Therefore, the fair market value of the assets transferred to the spousal trust would be used as the adjusted cost base for the purpose of calculating capital gains or losses in future transactions.

At Her Death on August 1 of the Current Year