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With Respect to the Application of ITA 88(1), Winding Up

Question 64

Multiple Choice

With respect to the application of ITA 88(1) , winding up of a 90 percent owned subsidiary, which of the following statements is NOT correct?


A) The GRIP balance will flow through to the parent company if both the subsidiary and the parent were CCPC's before the windup.
B) LRIP balances will only flow through to the parent if the subsidiary was a CCPC.
C) The subsidiary is deemed to have disposed of its assets at their cost amount, which is an amount that is defined differently for different asset types.
D) The subsidiary will not claim CCA on its assets in the year of the windup, but the parent is able to claim CCA on subsidiary assets in the windup year.

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