Roland and Zelda were married for 7 years before they separated and Zelda moved to the United States. When they divorced, Roland was ordered to transfer his investment portfolio to Zelda. The portfolio had an ACB of 42,000 and a FMV of67,000 at the time of the transfer. As a result of the transfer, What will happen?
1) Roland will realize a taxable capital gain of $25,000
2) Roland will realize a deemed capital gain of $25,000
3) Roland can rollover the assets to Zelda at their ACB
4) Roland can choose to rollover the assets to Zelda at any amount between their ACB and the FMV at the time of the transfer