AFM363 Lecture Notes - Lecture 18: Association Rule Learning

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM363
• Professor: Dan Rogozynski

Document Summary

Simple test: one corporation directly or indirectly controls another, or, a person or group of persons control both corporations. Complex test: three conditions must all be met: control test: greater than 50% of voting rights by one of the person(s) , greater than. 50% of fmv, or control in fact: related test: person who controls one corp. must be related to the person who controls the other corp. Fixed dividend amount or %, which does not exceed prescribed interest rate. Cannot redeem for more than fmv at purchase. Sharing of expenditure limit for itcs (sr&ed) Investment income from associated corporation deemed to be abi. Related: an individual (or corporation) is related to a corporation if that individual (or corporation) controls the corporation (voting rights). If a person is related to the controlling person, then they are also deemed to be related to the controlled corporation.