C sold capital property in Year 1 for net proceeds of $200,000. The property has an adjusted cost base of $40,000. C received$120,000 at the time of the sale and a note for the balance to be paid in equal annual instalments over the following two years. What isthe minimum taxable capital gain to be reported in Year 2?

Total gain = Sale proceeds - adjusted cost base = $200000 - $40000 = $160000

Answered: C sold capital property in Year 1 for…

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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