Adjustments to Carrying Values. (i) On an issuance of additional Trust Units for cash or other property and immediately prior to any distribution to a Unitholder (other than a distribution of cash that is not in redemption or retirement of a Trust Unit), the Tax Matters Partner may cause the Carrying Value of each Trust property to be adjusted as of the beginning of the next taxable period to be equal to fair market value thereof (taking into account Section 7701(g) of the Internal Revenue Code), as determined by the Tax Matters Partner using such reasonable method of valuation as it may adopt. The Tax Matters Partner shall not adjust the Carrying Values of Trust property upon the issuance of Trust Units in exchange for Series A Exchangeable Shares of New Enterra that the Trust acquires pursuant to the Exchangeable Shares Provisions (as defined in the Information Circular). (ii) After any adjustment of Carrying Values pursuant to subsection 17.10(b)(i) hereof, the Tax Matters Partner shall determine the way, if any, in which such changes in Carrying Value shall affect the allocations for United States federal income tax purposes pursuant to Section 17.12 hereof of the items of income, gain, loss, deduction and credit that are recognized by the Trust for such purposes. Any such determination shall be entered in the records of the Trust.
Appears in 1 contract
Adjustments to Carrying Values. (i) On an issuance of additional Trust Units for cash or other property and immediately prior to any distribution to a Unitholder (other than a distribution of cash that is not in redemption or retirement of a Trust Unit), the Tax Matters Partner may cause the Carrying Value of each Trust property to be adjusted as of the beginning of the next taxable period to be equal to fair market value thereof (taking into account Section 7701(g) of the Internal Revenue Code), as determined by the Tax Matters Partner using such reasonable method of valuation as it may adopt. The Tax Matters Partner shall not adjust the Carrying Values of Trust property upon the issuance of Trust Units in exchange for Series A Exchangeable Shares of New Enterra that the Trust acquires pursuant to the Exchangeable Shares Provisions (as defined in the Information Circular).
(ii) After any adjustment of Carrying Values pursuant to subsection 17.10(b)(i) hereof, the Tax Matters Partner shall determine the way, if any, in which such changes in Carrying Value shall affect the allocations for United States federal income tax purposes pursuant to Section 17.12 hereof of the items of income, gain, loss, deduction and credit that are recognized by the Trust for such purposes. Any such determination shall be entered in the records of the Trust.
Appears in 1 contract