Jerry transfers a Class 10 depreciable property to Bampton Holdings Inc., a corporation 100% owned by Jerry.
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Question:
Jerry transfers a Class 10 depreciable property to Bampton Holdings Inc., a corporation 100% owned by Jerry. The property was the only asset in Jerry''s Class 10 UCC pool.
Capital cost to Jerry: $25,000
Selling price (FMV): $20,000
UCC: $22,000
Which of the following statements regarding this transaction is true at the time of transfer?
Jerry is allowed to claim a terminal loss.
Bampton Holdings is allowed to claim a terminal loss.
Jerry is deemed to own a Class 10 asset with a UCC of $22,000 after the transfer.
Bampton Holdings and Jerry are allowed to claim CCA after the transfer.
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