AccountingWhen you dispose of a property and end up witha gain or a loss, it may be treated in one of 2 ways.What are they?When you dispose of personal-use property, youusually do not have a capital gain. Why not?To calculate any capital gain or loss, you need toknow the following 3 amounts:the proceeds of dispositionthe adjusted cost base (ACB)the outlays and expenses incurred to sell yourpropertyUsing these three amounts, what is the formulato calculate your capital gain or loss?4. Capital Gains are reported on Schedule 3.What line does the sale of Personal UseProperty go on?

The Following are answers related to capital gain or (loss):

Answered: Accounting When you dispose of a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.
The difference between book value of the asset with the proceeds received from its sale, will resultin Select one a. Always a gain b Depreciable Cost c Cain or loss d. Always a loss
The generally accepted accounting principle that supports recording the value of a property at the purchase price when the market value is higher is the: O monetary principle O going concern principle O conservatism principle O cost principle
26. What is the general formula for calculating the gain or loss realized on the sale or other disposition of property? Include in your answer a discussion of how to calculate each "element" of the formula for calculating gain or loss realized, assuming that the property is purchased at original cost. Also, discuss common circumstances where the basis of property is "adjusted" over time.
1. How do we decide whether to capitalize (record as an asset) or expense a particular cost? 2. Provide one example of each to capitalize (record as an asset) or expense a particular cost.
Which is not charged against the income of an estate? 1 Ordinary repairs to income-producing property 2 Expenses incurred to protect income flow 3 Loss on the sale of an estate asset 4 All of the above are charged against the income
Question: (a) What is a Capital Recovery Amount Factor (b) Write a detailed note on Minimum Attractive Rate of Return. (c) "Land" is not considered as a depreciable property. WHY? (d) Differentiate between income tax and sales tax. Explain both of these types with the help of examples. ww aN
The generally accepted accounting principle that supports recording the value of a property at the purchase price when the market value is higher is the: A. conservatism principle B. going concern principle C. monetary principle D. cost principle
What is the amount realized in a transaction? The gain on the sale of an asset The proceeds less the basis The sum of any money received plus the fair market value of other property received The portion of the gain that is recognized
Which of the following items is not charged against the income of an estate? a. Ordinary repairs to income-producing property b. Expenses incurred to protect income flow c. Loss on the sale of an estate asset d. All of the above are charged against the income
True or False Any net income obtained from selling a depreciated property according to its last market value is considered acapital gain.
Executory costs include Select one: a. insurance. b. property taxes. c. maintenance. d. all of these

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