Charlie owns all the issued shares of X Ltd. These common shares have an ACB and PUC of $40,000 and are worth $720,000. Charlie would like to freeze his interest in the company at today’s value so that future increases in value accrue to three employees. In the course of a reorganization of share capital, Charlie exchanged his common shares for preferred shares of X plus debt of $20,000. The preferred shares are redeemable for $700,000. The employees then acquired newly issued common shares of X for $80,000. What is the PUC of the preferred shares owned by Charlie?



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