A Purchaser Has Agreed to Purchase All of the Shares

question 4

Multiple Choice

A purchaser has agreed to purchase all of the shares of Tee Co., a CCPC. Tee Co. owns fifteen significant capital assets, some of which have appreciated in value. Which of the following is TRUE?

• A) The capital cost allowance on the assets will be higher for the purchaser than it was for the vendor.
• B) The purchaser will obtain a cost base of the assets equal to fair market value.
• C) The purchaser will be responsible for the liabilities of Tee Co.
• D) The sale will result in business income for the vendor.

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Definitions:

Online

Connected to or available through the internet or another computer network.

HR Technology Platform

Digital solutions that automate and facilitate managing human resource functions, including recruitment, payroll, performance management, and employee engagement.

Publicly Traded

Refers to companies whose shares are bought and sold by the public on stock exchanges.

Conversational Commerce

The intersection of messaging apps and shopping; the practice of engaging customers in conversation through chat and voice interfaces to initiate the buying process.