An Individual Sells Shares in a Canadian Controlled Private Corporation

question 79

True/False

An individual sells shares in a Canadian controlled private corporation that qualifies as a small business corporation to an arm's length party.The adjusted cost base of the shares is
$50,000 and they are sold for $30,000.The $20,000 loss is an Allowable Business Invest- ment Loss.

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Definitions:

Suez Canal

A man-made waterway in Egypt, opened in 1869, connecting the Mediterranean Sea to the Red Sea, significantly reducing travel time for maritime trade between Europe and Asia.

European Powers

Refers to the leading nations in Europe, particularly during the colonial and imperial periods, known for their significant influence and control over global affairs.

Henry Stanley

A Welsh-American explorer best known for his expeditions in Africa, including his quest to find David Livingstone and his development of the Congo region.

African Colonies

Territories in Africa that were under the control of European powers from the late 19th century to the mid-20th century.