A purchaser has agreed to purchase all of the shares of Tee Co., a CCPC. Tee Co. owns fifteen significant capital assets, some of which have appreciated in value. Which of the following is TRUE?
A) The capital cost allowance on the assets will be higher for the purchaser than it was for the vendor.
B) The purchaser will obtain a cost base of the assets equal to fair market value.
C) The purchaser will be responsible for the liabilities of Tee Co.
D) The sale will result in business income for the vendor.

Question

Quizplus · Accepted Answer

When purchasing all shares of a corporation, the purchaser assumes ownership of the company, including its assets and liabilities.

A Purchaser Has Agreed to Purchase All of the Shares