Question a)

If an asset has a negative adjusted cost base during the year the taxpayer must:

	recognize the amount as recapture.
	wait until the end of the year to see if later adjustments eliminate the deficit balance first.
	treat the deficiency as a capital gain.
	recognize the capital loss regardless of any future adjustments.

Question b)

Foreign currency funds on deposit are not considered to be disposed of until they are converted into another currency.

	True
	False

Question c)

Which of the following is not included in ITA 53 as an adjustment to the adjusted cost base of an asset?

	CCA deductions taken.
	Forgiveness of debt on property.
	Government grants.
	Undeducted interest and property tax on vacant land