When selling a business it is important to know if the corporation that owns the for sale business qualifies as a small business corporation. If

When selling a business it is important to know if the corporation that owns the €œfor sale€ business qualifies as a small business corporation. If so, the shareholder(s) may qualify for all or some of the $800,000 capital gains exemption if the shares are sold. This question examines this qualification.
The following four situations, A through D, are independent.

Additional information:
€¢ In each of the above situations, the land, building and equipment are used by the owner in an active business carried on in Canada, with the exception of D. In the case of D, the land and building are leased to Spousecorp, a CCPC, and are used by Spousecorp in its active business, which it carries on in Canada. D is owned by the spouse of the sole shareholder of Spousecorp.
€¢ X Ltd. is a public company.
€¢ Y Ltd. is a small business corporation, owned 50% by each of A and C.
Required:
Determine which of the above CCPCs are small business corporations and state the reason for your conclusion.

CCPCA CCPC B CCPCC CCPCD Assets at FMV Term deposits S15,000 S 50,000 40.000 an 35,000 Building Equipment Shares of X Ltd Shares of Y Ltd 60.000 80,000 20,000 15.000 15.000 100,000 100,000 30,000 100,000 Liabilities 10,000 10,000 20,000 Accounts payable 2,000 Bank loan 2,000 Assets net of liabilities S 80000 $98.000 30.000 S100.000