A Parent Transfers Their Common Shares in Their Business to Non-Participating

question 5

Multiple Choice

A parent transfers their common shares in their business to non-participating fixed value preferred shares, and common shares in the business are issued to the parent's child who is taking over the operations of the company.This is an example of which of the following?

• A)A measure to reduce the tax impact on the growth of the child's shares
• B)An estate freeze
• C)Income splitting
• D)A specified investment flow-through

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