Which of the Following Scenarios Will Not Be Allowed to Elect

question 1

Multiple Choice

Which of the following scenarios will not be allowed to elect to eliminate the GST/HST on the sale of Tree Co.to Leaf Co.?

• A)Tree Co.and Leaf Co.are both GST/HST registrants.
• B)Neither Tree Co.nor Leaf Co.are GST/HST registrants.
• C)Tree Co.is a GST/HST registrant, and Leaf Co.is not a GST/HST registrant.
• D)Tree Co.is not a GST/HST registrant, and Leaf Co.is a GST/HST registrant.

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Definitions:

Straight-Line Depreciation

A method for distributing the cost of a solid asset in even annual payments throughout its effective life.

Insurance Premiums

The amount of money that an individual or business must pay for an insurance policy.

Direct Materials Cost

The expense associated with the raw materials directly used in the production of a product.

Cost Behavior Classifications

The categorization of costs based on how they change in relation to changes in a company’s level of activity or volume.