Which of the Following Assets Cannot Be Transferred to a Corporation

question 63

Multiple Choice

Which of the following assets cannot be transferred to a corporation under the provisions of ITA 85(1) ?

• A)Depreciable capital property.
• B)Canadian resource properties.
• C)A group of real properties that are being held for immediate resale.
• D)Eligible capital property that is being held for immediate resale.

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Definitions:

M. Sims Capital

An account representing the owner’s equity or the funds contributed by and belonging to the owner of a company.

Income Summary

An account used in the closing process that aggregates all income and expense accounts to determine the net profit or loss.

Net Income

The total profit of a business after all expenses and taxes have been deducted from total revenue.

Owner's Capital

The amount of equity a business owner has invested in the business minus any withdrawals made from the business by the owner.