Malik Edson has the following assets: • Land with ACB of $60,000 Building with a cost of $105,000, and UCC of $79,000. Malik sells both of land and building in a single transaction for $219,000. The estimated FMV of each was: • Land: $146,000 • Building: $73,000 How much capital gain and terminal loss will Malik realize on this transaction? Choose the correct answer. A. capital gain of $73,000, terminal loss of $32,000 B. capital gain of $73,000, terminal loss of $6,000 C. capital gain of $54,000, terminal loss of $0 D. capital gain of $80,000, terminal loss of $0

Malik Edson has the following assets: • Land with ACB of $60,000 Building with a cost of $105,000, and UCC of $79,000. Malik sells both of land and building in a single transaction for $219,000. The estimated FMV of each was: • Land: $146,000 • Building: $73,000 How much capital gain and terminal loss will Malik realize on this transaction? Choose the correct answer. A. capital gain of $73,000, terminal loss of $32,000 B. capital gain of $73,000, terminal loss of $6,000 C. capital gain of $54,000, terminal loss of $0 D. capital gain of $80,000, terminal loss of $0

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter16: Property Transactions: Capital Gains And Losses

Section: Chapter Questions

Problem 25P

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