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On January 1, 2023, Marcus Abbott permanently leaves Canada becoming a non-resident. At that time, his only property consists of his principal residence and a small apartment building. His principal residence was purchased several years ago at a cost of $650,000. Of this total $150,000 relates to the land and $500,000 to the building. The current FMV of his residence is $975,000. The value of the land is unchanged at the time of his departure. The apartment building had a capital cost of $870,000, with $170,000 of this total allocated to the land and $700,000 to the building. The building had a January 1, 2023 UCC balance of $476,000. At the time of his departure, the FMV of the apartment building is $1,200,000, with the value of the land remaining at $170,000 and the building at $1,030,000. What is the minimum amount to be added to Mr. Abbott's 2023 net income with respect to terminating his residency in Canada? Select one: A. $ 655,000. B. $724,000 C. $559,000 D. Nil

On January 1, 2023, Marcus Abbott permanently leaves Canada becoming a non-resident. At that time, his only property consists of his principal residence and a small apartment building. His principal residence was purchased several years ago at a cost of $650,000. Of this total $150,000 relates to the land and $500,000 to the building. The current FMV of his residence is $975,000. The value of the land is unchanged at the time of his departure. The apartment building had a capital cost of $870,000, with $170,000 of this total allocated to the land and $700,000 to the building. The building had a January 1, 2023 UCC balance of $476,000. At the time of his departure, the FMV of the apartment building is $1,200,000, with the value of the land remaining at $170,000 and the building at $1,030,000. What is the minimum amount to be added to Mr. Abbott's 2023 net income with respect to terminating his residency in Canada? Select one: A. $ 655,000. B. $724,000 C. $559,000 D. Nil

FINANCIAL ACCOUNTING
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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On January 1, 2023, Marcus Abbott permanently leaves Canada becoming a non-resident. At that time, his only property consists of his principal residence and a small apartment building. His principal residence was purchased several years ago at a cost of $650,000. Of this total $150,000 relates to the land and $500,000 to the building. The current FMV of his residence is $975,000. The value of the land is unchanged at the time of his departure. The apartment building had a capital cost of $870,000, with $170,000 of this total allocated to the land and $700,000 to the building. The building had a January 1, 2023 UCC balance of $476,000. At the time of his departure, the FMV of the apartment building is $1,200,000, with the value of the land remaining at $170,000 and the building at $1,030,000. What is the minimum amount to be added to Mr. Abbott's 2023 net income with respect to terminating his residency in Canada? Select one: A. $ 655,000. B. $724,000 C. $559,000 D. Nil
Transcribed Image Text:On January 1, 2023, Marcus Abbott permanently leaves Canada becoming a non-resident. At that time, his only property consists of his principal residence and a small apartment building. His principal residence was purchased several years ago at a cost of $650,000. Of this total $150,000 relates to the land and $500,000 to the building. The current FMV of his residence is $975,000. The value of the land is unchanged at the time of his departure. The apartment building had a capital cost of $870,000, with $170,000 of this total allocated to the land and $700,000 to the building. The building had a January 1, 2023 UCC balance of $476,000. At the time of his departure, the FMV of the apartment building is $1,200,000, with the value of the land remaining at $170,000 and the building at $1,030,000. What is the minimum amount to be added to Mr. Abbott's 2023 net income with respect to terminating his residency in Canada? Select one: A. $ 655,000. B. $724,000 C. $559,000 D. Nil
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