Which of the Following Is One of the Conditions Necessary

question 1

Multiple Choice

Which of the following is one of the conditions necessary for an amalgamation to result in a tax-free combination?

• A) At least one of the corporations must be Canadian.
• B) All of the shareholders of the old corporations must become shareholders of the new corporations.
• C) The two corporations must be in a similar line of business.
• D) 50 percent of the assets and liabilities of the old corporation must become assets and liabilities of the new corporation.