Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected? a) $70,000 b) $30,000 c) SO d) $15,000
Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected? a) $70,000 b) $30,000 c) SO d) $15,000
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 52P
Related questions
Question
![Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in
preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected?
a) $70,000
b) $30,000
c) SO
d) $15,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a1b1cdd-eb06-4452-9368-07f5b664f084%2Fff91f434-7a29-4461-9f7e-94164db090ee%2Fl2z8yzu_processed.png&w=3840&q=75)
Transcribed Image Text:Cirrata Inc. is transferring land to Fins Co., a CCPC, under section 85 of the Income Tax Act. The land has an ACB of $70,000 and a FMV of $150,000. Cirrata Inc. will receive $100,000 as non-share consideration and $50,000 in
preferred shares. How much is Cirrata's income or loss for tax purposes as a result of the roll-over if the minimum allowable elected value is selected?
a) $70,000
b) $30,000
c) SO
d) $15,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT