The following diagram depicts the ownership structure of two CCPCs. Bob Ligh is Lisa Light's son. Sarah Paint and Alan Canvas are not related to Bob and Lisa in any manner, what-so-ever. All of the shares held are common.
Required:

Question

The following diagram depicts the ownership structure of two CCPCs. Bob Ligh is Lisa Light's son. Sarah Paint and Alan Canvas are not related to Bob and Lisa in any manner, what-so-ever. All of the shares held are common.
  Required:

Quizplus · Accepted Answer

The Answer is A) The two corporations are associated as defined by paragraph 256(1)(c) of the ITA.
Each corporation is controlled by one person, and the two people are
related, and one of the people, Lisa Light, owns not less than 25% of the shares of either corporation.
B) The associated companies will have to share the small business deduction.

The Following Diagram Depicts the Ownership Structure of Two CCPCs