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,all of which have appreciated in value.Which of the following is TRUE?

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

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