4. 5 6 8 9 10 11.12 E 9. With respect to the taxation of an individual's principal residence, which of the following statements is correct? A. Any real property that is owned by a taxpayer can be designated as a principal residence in a given year. B. If a principal residence is converted to a rental property, an individual can elect not to have a deemed disposition and can continue to designate the property as his principal residence for up to four years after the change in use. C. The disposition of a property that could be designated as a principal residence will never result in a capital gain. D. A farm property, including all of the land that is used for farming, can be designated as a principal residence. 13. During 2018, an individual sells a capital asset with an adjusted cost base of $122,000. The sales price is $187,000, with $40,000 of this amount being paid immediately. An additional $40,000 will be paid in 2019, with the $107,000 balance due in 2020. What is the maximum amount of the capital gains reserve that can be deducted for 2019? A. $107,000 B. $39,000 C. $52,000 D. $37,193 133