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

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Definitions:

Glycolysis

A metabolic pathway that breaks down glucose into pyruvate, releasing energy and forming ATP, commonly occurring in nearly all living cells.

Cardiorespiratory Fitness

The efficiency with which the heart, lungs, and vascular system supply oxygen-rich blood to the muscles during sustained physical activity.

Creatine

A naturally occurring compound in the body that supports energy production, particularly in muscle cells, and is often supplemented for athletic performance.

ATP

Adenosine Triphosphate, a molecule that stores and transfers energy within cells, critical for metabolic processes.