Which of the following statements about ITA 85.1 is NOT correct?
A) This provision is commonly used in business combination transactions.
B) The vendor and the purchaser must be dealing with each other at arm's length.
C) The vendor can receive a combination of shares and non-share consideration in return for the shares he is giving up.
D) The vendor will be deemed to have disposed of his shares for proceeds equal to their adjusted cost base.
Correct Answer:
Verified
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