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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
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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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)(iii) 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
Transcribed Image Text: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)(iii) 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
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