mc_q_25 - tax purposes and the same business is carried on,...

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MULTIPLE CHOICE QUESTIONS Q25. Peach Farming Ltd. has been in operation for twenty years. While the company incurred some losses on start-up, it had very profitable years until about five years ago. At present, it has farming losses carried forward as follows: Year Ended Loss October 31, 2006 $10,000 October 31, 2007 8,000 October 31, 2008 15,000 On December 31, 2007, 70 per cent of the shares in Peach Farming Ltd. were purchased by Mr. Knox. Mr. Knox was not related to the corporation prior to the purchase. Assuming Peach Farming Ltd. maintains a year-end of October 31 for
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Unformatted text preview: tax purposes and the same business is carried on, the losses expire as follows: (a) $10,000 on October 31, 2025; $8,000 on October 31, 2026 and $15,000 on October 31, 2027 (b) $10,000 on October 31, 2026; $8,000 on October 31, 2027 and $15,000 on October 31, 2028 (c) $10,000 on October 31, 2015; $8,000 on October 31, 2016 and $15,000 on October 31, 2017 (d) $10,000 on October 31, 2016; $8,000 on October 31, 2017 and $15,000 on October 31, 2018...
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