mc_s_26_32

mc_s_26_32 - one or more public corporations or any...

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MULTIPLE CHOICE QUESTIONS SOLUTIONS Q26. (c) Hughes and ARC under par. 256(1)( a ). Jimbo and ARC — Hanes deemed to own 32% of ARC; daughter-in-law deemed to own 4% of ARC by look through rules in par. 256(1.2)( d ). When added to the 15% daughter-in-law owns outright, a related group owns 51% of ARC. The corporations are associated by par. 256(1)( d ) since Hanes controls Jimbo, a related group that controls ARC and Hanes is deemed to own greater than 25% of ARC. Jimbo and Hughes associated by ssec. 256(2). Q27. (b) A CCPC must be all of the following: a private corporation; a Canadian corporation; and a corporation that is not controlled directly or indirectly by - one or more non-resident persons
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Unformatted text preview: - one or more public corporations or- any combination thereof. Q28. (a) Expenditures are eligible only if undertaken directly in support of basic or applied research or eligible development activities. Q29. (c) Amos Dans and his brother are a group that control both A Ltd. (55%) and B Ltd. (65%). Therefore, A Ltd. and B Ltd. are associated par. 256(1)( b ). Q30. (a) RDTOH, beginning of year $25,000 less: dividend refund for preceding year $15,000 x 1/3 (5,000) add: refundable portion of Part I tax 10,000 Part IV tax payable-RDTOH, end of year $30,000 Q31. (a) Undeducted R&D pool $300,000 2007 ITC (140,000 ) $160,000 Q32. (c) Personal services income....
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This note was uploaded on 11/19/2010 for the course ACC 742 taught by Professor Sydor during the Spring '10 term at Ryerson.

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