Which of the following is NOT one of the circumstances that result in a deemed dividend as per ITA 84?

A.

A deemed dividend occurs when shares have been issued in exchange for assets or to settle debt and the issued shares have a paid up capital in excess of the increase in net assets of the corporation.

B.

A deemed dividend occurs when there is a winding-up of a corporation and the remaining cash is distributed to the shareholders.

C.

A deemed dividend occurs when the paid up capital of one class of shares is decreased at the same time and by the same amount as the paid up capital of another class of shares is increased.

D.

A deemed dividend occurs when a corporation acquires and cancels some of its outstanding shares.