Foods CoIs for Sale

question 8

Multiple Choice

Foods Co.is for sale.The corporation has never had shareholdings in other corporations, and the company will be a small business corporation at the time of sale.Which of the following is not one of the conditions necessary in the 24 months preceding the sale of shares for qualified small business corporation status to apply for Foods?

• A)Foods Co.must be a CCPC.
• B)Foods Co's shares must not be owned by an unrelated person.
• C)More than 50% of the fair market value of the assets must be 'active business' assets.
• D)100% of the fair market value of the assets must be 'active business' assets.

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Definitions:

Residual Value

The amount for which the lessee can purchase a leased vehicle at the end of the term of the lease.

Compounded Quarterly

Calculating interest on both the initial principal and previously accumulated interest four times a year.

Lease Interest

The interest cost associated with leasing an asset, often a charge in addition to the lease payments.

General Annuity

An annuity in which the payment interval does not equal the compounding interval.