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Required: Calculate the capital gains reserve which may be claimed by John for 20x4 to 20x9

Required: Calculate the capital gains reserve which may be claimed by John for 20x4 to 20x9

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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CAPITAL GAINS RESERVE EXAMPLE In 20x4 John sold a building having an ACB of 40,000 for 250,000. Disposal fees on this transaction were $10,000. The purchaser has agreed to pay for the building according to the following payment schedule 20x4- 20x5- 20x6- 20x7- 20x8- 20x9- 50 50,000 50,000 110,000 25,000 15,000 $250,000 Required: Calculate the capital gains reserve which may be claimed by John for 20x4 to 20x9
Transcribed Image Text:CAPITAL GAINS RESERVE EXAMPLE In 20x4 John sold a building having an ACB of 40,000 for 250,000. Disposal fees on this transaction were $10,000. The purchaser has agreed to pay for the building according to the following payment schedule 20x4- 20x5- 20x6- 20x7- 20x8- 20x9- 50 50,000 50,000 110,000 25,000 15,000 $250,000 Required: Calculate the capital gains reserve which may be claimed by John for 20x4 to 20x9
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