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Tire Corp. (Tire) acquired Car Service Corp. (CSC) on June 1 of the current year....

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Accounting

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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