Wilson purchased a large piece of land on the edge of St Albert in 1989 for $150,000. He sold it on March 1, 2020 to a developer for $550,000. He received a down payment of $250,000 at the time of sale. The remaining $300,000 is to be paid to him in equal annual instalments of $100,000 beginning March 1, 2021. Calculate Wilson's maximum capital gains reserve in 2020. Show work in the space below.

Wilson purchased a large piece of land on the edge of St Albert in 1989 for $150,000. He sold it on March 1, 2020 to a developer for $550,000. He received a down payment of $250,000 at the time of sale. The remaining $300,000 is to be paid to him in equal annual instalments of $100,000 beginning March 1, 2021. Calculate Wilson's maximum capital gains reserve in 2020. Show work in the space below.

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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