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Tire Corp. (Tire) acquired Car Service Corp. (CSC) on June 1 of the current year. CSC has net capital losses and non-capital losses. Tire has
Tire Corp. (Tire) acquired Car Service Corp. (CSC) on June 1 of the current year. CSC has net capital losses and non-capital losses. Tire has an April 30 year end and CSC has a May 31 year end. Tire manufactures tires and CSC provides car-sharing services. Tire plans to continue to operate the car-sharing services.
Which of the following would occur as a consequence of this acquisition of control?
| a. | Short taxation year | |
| b. | Restrictions on the use of net capital losses
| |
| c. | Expiry of non-capital losses
| |
| d. | Deemed disposition of all assets with accrued losses |
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