Question 8.1.25 The following information relates to the sale of a piece of land in the current taxation year. Adjusted cost base of land: $275,000 Total proceeds of disposition: $500,000 In the current year, the seller received $200,000 of the proceeds of disposition in cash and a note payable for the remainder ($300,000). What is the maximum ITA40(1)(a)(ii) capital gains reserve that can be claimed by the seller in the current year: OA. $135,000 O B. $0 OC. $225,000 OD. $180,000

Question 8.1.25 The following information relates to the sale of a piece of land in the current taxation year. Adjusted cost base of land: $275,000 Total proceeds of disposition: $500,000 In the current year, the seller received $200,000 of the proceeds of disposition in cash and a note payable for the remainder ($300,000). What is the maximum ITA40(1)(a)(ii) capital gains reserve that can be claimed by the seller in the current year: OA. $135,000 O B. $0 OC. $225,000 OD. $180,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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