Jaden Sawyer owns 76% of the common shares of Sawyer Ltd. Jadens shares have an ACB of $604,000.The Sawyer common shares have a total PUC of $999,000 and a total FMV of $2,501,000.
Using the provisions of ITA 86, Jaden exchanged his shares for cash of 604,000 and preferred shares with a legal capital and FMV of $1,401,000. What is the PUC of Jaden’s preferred shares?