Ch. 29 - Business Structure (Other Rollovers)

Question 1

Paid up capital

1. what is it
2. how is it measured

Answer 1

1. the amount the shares were originally subscribed for

1. determined on a weighted average basis

Question 2

Adjusted cost base

1. what is it
2. how is it measured

Answer 2

1. the amount paid to acquire the shares

2. determined at the shareholder level

Question 3

Deemed dividend on redemption of shares - calculation

Answer 3

redemption price - PUC

Question 4

Capital gain/loss on redemption of shares

Answer 4

redemption price - deemed dividend = adjusted proceeds - ACB - capital gain/loss