Tire Corp. (Tire) acquired Car Service Corp. (CSC) on June 1 of the current year....
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Tire Corp. (Tire) acquired Car Service Corp. (CSC) on June 1 of the current year. CSC has net capital losses and non-capital losses. Tire has an April 30 year end and CSC has a May 31 year end. Tire manufactures tires and CSC provides car-sharing services. Tire plans to continue to operate the car-sharing services.
Which of the following would occur as a consequence of this acquisition of control?
a.
Short taxation year
b.
Restrictions on the use of net capital losses
c.
Expiry of non-capital losses
d.
Deemed disposition of all assets with accrued losses
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