Which of the following statements related to ITA 87 amalgamations is correct?
A) An amalgamation cannot increase the total amount of income eligible for the manufacturing and processing deduction.
B) By bringing together a profitable and an unprofitable company, an amalgamation can result in a faster write off of capital assets through CCA deduction.
C) An acquisition of control can be effected through an amalgamation which would enable prior year net capital losses of both predecessor companies to be used.
D) After an amalgamation, the losses of one of the predecessor companies cannot be used against the taxable income of the other predecessor company.
Correct Answer:
Verified
Q39: When the assets of a Canadian controlled
Q40: In a share for share exchange under
Q41: Which of the following is NOT an
Q42: Tiffany owns shares in the public corporation,
Q43: Jerome Owen owns 70 percent of the
Q45: John Smurt owns 80 percent of the
Q46: Mr. Couture would like to transfer his
Q47: In a situation where a parent decides
Q48: Which of the following statements is NOT
Q49: With respect to the application of ITA
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents