The following shares were issued in Barney Co.between 2018 and 2020:
January 1, 2018: Kelsey Weber incorporated Barney Co.and received 2,000 common shares for $2,000 from the corporate treasury.
January 1, 2019: István Horvath received 500 common shares in Barney Co.for $1,000 (fair market value) from the corporate treasury.
December 31, 2020: Addison Walker received 1000 preferred shares of Barney Co.for $5,000 (fair market value) from the corporate treasury.
Required:
A.Calculate the paid-up capital (PUC) of the common shares and the preferred shares of Barney Co.at the end of 2020.
B.Calculate the PUC and adjusted cost base (ACB) of the shares held by Kelsey, István, and Addison.
(Work must be shown for marks to be awarded.)

Question

Quizplus · Accepted Answer

The Answer of The following shares were issued in Barney Co.between 2018 and 2020:
January 1, 2018: Kelsey Weber incorporated Barney Co.and received 2,000 common shares for $2,000 from the corporate treasury.
January 1, 2019: István Horvath received 500 common shares in Barney Co.for $1,000 (fair market value) from the corporate treasury.
December 31, 2020: Addison Walker received 1000 preferred shares of Barney Co.for $5,000 (fair market value) from the corporate treasury.
Required:
A.Calculate the paid-up capital (PUC) of the common shares and the preferred shares of Barney Co.at the end of 2020.
B.Calculate the PUC and adjusted cost base (ACB) of the shares held by Kelsey, István, and Addison.
(Work must be shown for marks to be awarded.)

The Following Shares Were Issued in Barney Co