Bernick v. Canada, 2004 DTC 6409, 2004 FCA 191 -- summary under Adjusted Cost Base

In finding that the cost to a partnership of bonds acquired by it in consideration for the issuance of units of the partnership was equal to the fair market value of the bonds at the time of acquisition, Sharlow J.A. indicated (at para. 31) that this "method of determining the acquisition cost of the bonds is based on the well established principle of income tax law that the cost of property acquired by a taxpayer is the amount of money or the value of the consideration given in exchange for the property" and noted that as at substantially all of the partnership property comprised the acquired bonds, it was reasonable to conclude that the value of the consideration paid by the partnership for the bonds was equal to the fair market value of the bonds when acquired.