Treez Ltdowns Land with a Fair Market Value of $100,000, a a Building

question 3

Multiple Choice

Treez Ltd.owns land with a fair market value of $100,000, a building with a fair market value of $75,000, and equipment with a fair market value of $25,000.These assets are used for active business conducted in Canada.Which of the following would disqualify Treez from being a small business corporation?

• A)Treez Ltd.also owns 40% of the non-eligible shares of Rock Co.(a small business corporation), which have a fair market value of $20,000.
• B)Treez Ltd.also owns portfolio shares in Leaf Co., (with less than 1% ownership), which have a fair market value of $5,000.
• C)Treez Ltd.also has long-term investments valued at $30,000.
• D)Treez Ltd.sold the equipment and used the funds to purchase 35% of the shares of Tree Co., a small business corporation.

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