When there is an acquisition of control, any non-depreciable asset with an adjusted cost base in excess of its fair market value must be written down to its fair market value.

Question

Quizplus · Accepted Answer

This is a requirement under the Canadian Income Tax Act. When there is an acquisition of control, the adjusted cost base of non-depreciable assets in excess of their fair market value must be written down to their fair market value for tax purposes.

When There Is an Acquisition of Control, Any Non-Depreciable Asset