Question
1. A Ltd. earns interest income on a loan to an associated corporation. The associated corporation deducted the interest expense from its active business income.
1. A Ltd. earns interest income on a loan to an associated corporation. The associated corporation deducted the interest expense from its active business income. This interest income earned by A Ltd. is active business income. Is this statement true or false?
2. D Ltd., a Canadian-controlled private corporation, has 4 full-time employees and earns interest income from an investment portfolio. D's interest income is classified as active business income. Is this statement true or false?
Step by Step Solution
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Step: 1
The detailed answer for the above question is provided below 1 False The statement is false Interest ...
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Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
