CPA CFE Exam
Timed Exam Mode - Simulated Conditions
The CPA Common Final Exam (CFE) is a three-day national examination administered by CPA Canada that assesses candidates' competencies across financial reporting, management accounting, audit and assurance, strategy and governance, and finance and taxation.
Under the Income Tax Act, what is the tax treatment of a winding-up of a subsidiary under Section 88(1)?
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A
All assets are deemed disposed of at fair market value
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B
The subsidiary's assets are transferred to the parent at tax cost (UCC, ACB) and the subsidiary's tax attributes (losses, etc.) generally flow to the parent
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C
The winding-up is always a taxable event
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D
No tax provisions address corporate wind-ups
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