Question: Bob sold a capital property on December 3 1 , 2 0 2 4 for $ 3 0 0 , 0 0 0 with $

Bob sold a capital property on December 31,2024 for $300,000 with $20,000 paid in cash and $280,000 payable December 31,2025. The ACB of the property was $170,000 and the selling costs totalled $10,000. Which one of the following amounts represents the minimum taxable capital gain required to be included in income for the 2024 taxation year if the maximum capital gains reserve is claimed?
Question 5 options:
$24,000.
$10,000.
$4,000.
$12,000.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Early in its fiscal year ending December 3 1 , 2 0 2 4 , San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 2 8 with the purchase of a tract of land...

Q:

Kingbird Corporation's balance sheet at December 3 1 , 2 0 2 4 , is presented below. Debits: Cash $ 9 3 , 0 0 0 Inventory 9 5 , 3 2 5 Prepaid insurance 1 7 , 3 6 0 Equipment 1 1 7 , 8 0 0 Total $ 3 2...

Q:

Calculate each of the following amounts pbo, planned assets, pension expense and net pension asset ( liability ) as of both December 3 1 , 2 0 2 4 , and December 3 1 , 2 0 2 5 :Stanley - Morgan...

Q:

Prepare a post - closing trial balance as of December 3 1 , 2 0 2 4 . On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures, Inc. The following transactions...

Q:

Magic GMBA 3 Corporation ? ? Income Statements For the Years Ended December 3 1 , 2 0 2 0 and 2 0 1 9 2 0 2 0 2 0 1 9 $ $ Operating revenues - Note 1 1 , 0 4 6 , 4 0 0 9 7 2 , 0 0 0 Less: Cost of...

Q:

The comparative balance sheet of Hirayama Industries Inc. for December 3 1 , 2 0 Y 2 and 2 0 Y 1 , is as follows: 1 Dec. 3 1 , 2 0 Y 2 Dec . 3 1 , 2 0 Y 1 2 Assets 3 Cash $ 4 8 6 . 0 0 $ 1 5 8 . 0 0...

Q:

Question 2 ( 3 2 marks ) Enes Inc. is the main manufacturer of multicolour headbands in Western Jamaica. The following budgeted data relates to Enes Inc. for two periods: December 3 1 , 2 0 2 2 and...

Q:

EN - IN On December 3 1 , 2 0 2 3 , Cheyenne Inc., a public company, borrowed $ 3 million at 1 1 % payable annually to finance the construction of a new building. In 2 0 2 4 , the company made the...

Q:

On December 3 1 , 2 0 1 9 , Hatfield Corporation held the following equity securities in its TRADING portfolio of securities: Cost Market Difference KSD $ 5 , 1 0 0 $ 4 , 0 0 0 $ 1 , 1 0 0 RJD 1 , 2...

Q:

Swifty Inc. had net income for the current year ending December 3 1 , 2 0 2 3 of $ 9 2 1 , 1 5 0 . During the entire year, there were 5 0 1 , 0 0 0 common shares outstanding. The company had two...

Q:

Suppose that your project was just completed (e.g. a party, a wedding, a team picnic, a study program, a charity campaign, etc). Because of some unfortunate circumstances, the project was delayed,...

Q:

The headlights of a moving car require about 10 A from the l2 V alternator, which is driven by the engine. Assume the alternator is 80% efficient (its output electrical power is 80% of its input...

Q:

Internal auditors must continue to expand their professional knowledge and abilities. For example, a practicing internal auditor may A . Complete 3 0 hours of CPE annually or 6 0 hours over 2 years....

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...