Which of the Following Scenarios Would Be Appropriate for a Section

question 1

Multiple Choice

Which of the following scenarios would be appropriate for a section 85 rollover?

• A) A shareholder of a corporation wishes to transfer his vehicle to his corporation. The vehicle originally cost $20,000 and has a market value of $12,000.
• B) A corporation wishes to convert land owned by the company into a parking lot.
• C) A taxpayer wishes to transfer property worth $200,000, with an ACB of $90,000, to her corporation.
• D) A corporation is selling its equipment to another corporation and does not wish to own shares in the other corporation.

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Definitions:

Cnidocils

Specialized cells found on cnidarians, like jellyfish, that contain a stinging structure used for capturing prey.

Nemerteans

A phylum of invertebrate animals also known as ribbon worms, which are known for their elongated bodies and proboscis used for feeding and defense.

Phoronids

A small phylum of marine animals that live in tubular structures and filter feed, known for their horseshoe-shaped lophophore.

Gastropods

A large class of mollusks that includes snails and slugs, characterized by a univalve shell or the absence of a shell.