A Trust Account Holds Two Buildings as Its Assets

question 8

Multiple Choice

A trust account holds two buildings as its assets. Building 1 originally cost $150,000 and Building 2 originally cost $210,000. It is now the 21st anniversary of the trust, and the assets have not been transferred to the beneficiary. The undepreciated capital cost of Building 1 is $85,000 and its market value is $200,000. The undepreciated capital cost of Building 2 is $145,000 and its market value is $190,000. Which costs will be the
Deemed acquisition values of the buildings for the trust?

• A) B1 = $150,000; B2 = $210,000
• B) B1 = $200,000; B2 = $190,000
• C) B1 = $85,000; B2 = $145,000
• D) B1 = $200,000; B2 = $210,000