Jai Raines is the sole shareholder of Jai Ltd. Summer Kauffman is the sole shareholder of SKY Co. Both of the companies are CCPCs. Jai and Summer will amalgamate their corporations as per Section 87(1) on July 21^st, 2020, forming JS Ltd. Jai's shares in Jai Ltd. have an ACB of $1,000 and a fair market value of $24,500. Summer's shares in SKY Co. have an ACB of $1,500 and a fair market value of $45,500. Which of the following will apply with respect to the planned amalgamation?

Multiple Choice

• Summer will control JS Co. after the amalgamation.

• JS Ltd.'s first taxation year will commence on July 22^nd.

• The ACB of Jai's and Summer's shares in SKY Co. will be $24,500 and $45,500 respectively.

• All carry forward balances in Jai Ltd. and SKY Co. are deemed to have expired prior to the amalgamation.

Subject: Canadian Income Taxation