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

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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, 2008 $10,000 October 31, 2009 8,000 October 31, 2010 15,000 On December 31, 2009, 70% 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 tax
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Unformatted text preview: purposes and the same business is carried on, the losses expire as follows: (a) $10,000 on October 31, 2027; $8,000 on October 31, 2028 and $15,000 on October 31, 2030 (b) $10,000 on October 31, 2028; $8,000 on October 31, 2029 and $15,000 on October 31, 2029 (c) $10,000 on October 31, 2017; $8,000 on October 31, 2018 and $15,000 on October 31, 2019 (d) $10,000 on October 31, 2018; $8,000 on October 31, 2019 and $15,000 on October 31, 2020...
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