public company to a registered charity. At the time of the gift, the shares had a value of $80,000 and an adjusted cost base (ACB) of $10,000. What would be the tax consequences to the donor? Multiple Choice The capital gain would be nil, and the donation tax credit (see Chapter 10) would be based on the $70.000 increase in the value of the shares. The capital gain would be $70,000 and the donation tax credit (see Chapter 10) would be based on the $80.000 current value of the shores
public company to a registered charity. At the time of the gift, the shares had a value of $80,000 and an adjusted cost base (ACB) of $10,000. What would be the tax consequences to the donor? Multiple Choice The capital gain would be nil, and the donation tax credit (see Chapter 10) would be based on the $70.000 increase in the value of the shares. The capital gain would be $70,000 and the donation tax credit (see Chapter 10) would be based on the $80.000 current value of the shores
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 39P
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Subject: accounting
Transcribed Image Text:An individual gifts shares of a Canadian public company to a registered charity. At the time of the gift, the shares had a value of $80,000 and
an adjusted cost base (ACB) of $10,000. What would be the tax consequences to the donor?
Multiple Choice
The capital gain would be nil, and the donation tox credit (see Chapter 10) would be based on the $70.000 increase in the
volue of the shares.
The capital gain would be $70,000 and the donation tax credit (see Chapter 10) would be based on the $80.000 current
value of the shores
O
The capital gain would be $35.000 and the donation tax credit (see Chapter 30 would be based on the $80.000 current
value of the shares
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