Stick Co.owns land with a fair market value of $100,000,a building with a fair market value of $75,000,and equipment with a fair market value of $25,000.These assets are used for active business conducted in Canada.Which of the following would disqualify Stick Co.from being a small business corporation?

Question

Quizplus · Accepted Answer

For a corporation to qualify as a small business corporation, at least 90% of its assets must be used in an active business in Canada. Long-term investments valued at $30,000 would likely cause Stick Co. to exceed the 10% threshold for non-active business assets, disqualifying it from being a small business corporation.

Stick CoOwns Land with a Fair Market Value of $100,000,a Building