A construction company sells a house with a FMV of $ 600 comma 000 to a shareholder of the corporation for $ 475 comma 000. The shareholder is liable for income tax on the $ 125 comma 000 difference. Question content area bottom Part 1 A. True because this transaction is classified as a shareholder benefit under ITA 163(2). B. True because this transaction is classified as a shareholder benefit under ITA 15(1). C. False because this transaction results in a loss of $ 125 comma 000, which means no income tax is due. D. False because the corporation, not the shareholder, is liable for income tax on the difference.

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