In transferring a business to a corporation, accounts receivable can be transferred using either ITA 22 or ITA 85(1), but not both. One advantage of using ITA 22 is:
A)the vendor will be able to deduct a capital loss.
B)the acquiring corporation will be able to deduct a bad debts reserve after the transfer.
C)the vendor will not have to add back to income any previously deducted reserve.
D)the vendor will have a loss that may be considered superficial.

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The Answer of In transferring a business to a corporation, accounts receivable can be transferred using either ITA 22 or ITA 85(1), but not both. One advantage of using ITA 22 is:
A)the vendor will be able to deduct a capital loss.
B)the acquiring corporation will be able to deduct a bad debts reserve after the transfer.
C)the vendor will not have to add back to income any previously deducted reserve.
D)the vendor will have a loss that may be considered superficial.

In Transferring a Business to a Corporation, Accounts Receivable Can