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01:48:47
Question 12 of 160 · 61 answered
10
Mark is looking to take his company, XYZ Corp...
11
If a lawyer receives a medical-legal report th...
12
Mark wishes to transfer property to Dingbat Ltd...
13
Under Ontario's Occupational Health and Safet...
14
A corporation is not entitled to deduct an ac...
15
In a claim for wrongful dismissal, the court...
16
The limitation period for an action for recov...
17
Which of the following best describes the du...
1
Mark is looking to take his company, XYZ Corp...
2
If a lawyer receives a medical-legal report th...
12
Mark wishes to transfer property to Dingbat Ltd...
14
A corporation is not entitled to deduct an ac...
16
The limitation period for an action for recov...
18
In civil litigation, a motion for summary ju...
21
A defendant may apply to set aside default ju...
24
The Rules of Civil Procedure govern the cond...
3
A corporation is not entitled to deduct an ac...
12
Mark wishes to transfer property to Dingbat Ltd...
9
In civil litigation, a motion for summary ju...
4
Under Ontario's Occupational Health and Safet...
6
In a claim for wrongful dismissal, the court...
12
Mark wishes to transfer property to Dingbat Ltd...
13
Under Ontario's Occupational Health and Safet...
15
In a claim for wrongful dismissal, the court...
17
Which of the following best describes the du...
19
A defendant may apply to set aside default ju...
22
The Rules of Civil Procedure govern the cond...

Business Law - Independent Questions

12 / 160

Mark wishes to transfer property to Dingbat Ltd. in exchange for common shares of the corporation. The directors of Dingbat Ltd. determine that $200 is the value of the consideration and issue $200 worth of common shares to Mark. Later, it is determined that property received by Dingbat Ltd. is only worth $150. Pursuant to section 84(1) of the Income Tax Act, what will happen to the excess amount added to the stated capital account for the common shares?

AThe $50 excess amount is deemed to be and taxed as an amortization expense
BThe $50 excess amount is deemed to be a capital loss for Mark
CThe $50 excess amount is deemed to be a capital loss for Dingbat Ltd.
DThe $50 excess amount is deemed to be and taxed to Mark as a dividend
Go toof 160

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