Match the Following Situations with the Appropriate Sections of the Income

question 4

Essay

Match the following situations with the appropriate sections of the Income Tax Act.
Situation
Shares are exchanged between two corporations at their tax costs. As a formal ta agreement is not required, this is a useful method for public corporations with
many shareholders.
Shares of two or more corporations are exchanged for shares of a new entity, and all of the assets of the corporations are transferred to the new entity.
Common shares are converted to preferred shares and held by the seller. New common shares are issued (often at a nominal value) to the purchaser.
Assets are sold from a vendor corporation to a buyer corporation at an elected
value, usually the assets' tax costs (i.e. UCC or ACB), in exchange for shares and a non-share payment not exceeding the elected value.
Section from the Income Tax Act
_______ Subsection 85(1)
_______ Subsection 85.1(1)
_______ Subsection 86(1)
_______ Subsection 87(1)

Understand the role of vigilant investors in the economy.

Understand the concept of constant net returns in stock value determination.

Learn the method of discounting future income to present value.

Understand the relationship between interest rates and the present value of future payments.

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Definitions:

Structuralists

Pioneers in psychology and linguistics who analyzed the structure of mental processes and language by breaking down elements into basic components.

Humanistic Psychologists

Psychologists who focus on individual potential for growth and the role of unique perceptions in growth processes, emphasizing a subjective view of human experience.

Skinner-behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, proposed by B.F. Skinner.

Freud-Gestalt Psychology

An approach that incorporates elements of Freud's psychoanalytic theory and Gestalt psychology, focusing on unconscious processes and perceptions in understanding behavior.