For each of the following items, explain which item will be subject to capital gain and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For each of the following items, explain which item will be subject to capital gain and provide a reason. ITEM Diamond ring Block of land Shares Caravan Trailer used 100% for work purposes PURCHASE DATE 12/04/1992 03/10/1984 03/07/1995 12/04/2016 01/10/2018 COST $650 $50,000 SALE DATE $27,000 $5,500 02/03/2022 Contract date 28/06/2022 Settlement date 04/08/2022 $550 Contract date 29/06/2022 Settlement date 01/07/2022 12/07/2021 01/07/2021 CAV $2,398 PROCEEDS $1,850 $850,000 $5,220 $19,800 $1,000 For each of the following items, explain which item will be subject to capital gain and provide a reason. ITEM Diamond ring Block of land Shares Caravan Trailer used 100% for work purposes PURCHASE DATE 12/04/1992 03/10/1984 03/07/1995 12/04/2016 01/10/2018 COST $650 $50,000 SALE DATE $27,000 $5,500 02/03/2022 Contract date 28/06/2022 Settlement date 04/08/2022 $550 Contract date 29/06/2022 Settlement date 01/07/2022 12/07/2021 01/07/2021 CAV $2,398 PROCEEDS $1,850 $850,000 $5,220 $19,800 $1,000
Expert Answer:
Answer rating: 100% (QA)
To determine which items will be subject to capital gain we need to compare the sale proceeds to the original cost of each item If the sale proceeds a... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Based off this ERD diagram create class diagrams. messages id INT user_id INT message VARCHAR(280) time_stamp TIMESTAMP Indexes mentions id INT user_id INT users id INT user_name VARCHAR(100)...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
In December 2022, more than a year after Ontarios vaccine management system was breached, the Ontario government is notifying around 360,000 people that their data was stolen and potentially given to...
-
What are the advantages and disadvantages of the various collision resolution strategies?
-
Part of a control linkage for an airplane consists of a rigid member CB and a flexible cable AB. If a force is applied to the end B of the member and causes it to rotate by θ = 0.5°,...
-
The data of Exercise 15.8 may be looked upon as evidence that the standard of \(3 \%\) unusable bearings is being exceeded. (a) Use the data from Exercise 15.8 to construct new control limits for the...
-
You have made it to the final round of the show Lets Make a Deal. You know that there is a $1 million prize behind either door 1, door 2, or door 3. It is equally likely that the prize is behind any...
-
Assume that you have been asked to provide a position statement for your client to attend mediation in a family law case. The information in this case is the other parent who is the petitioner, Ms....
-
Apollo Shoes is an audit case designed to introduce you to the entire audit process, from planning the engagement to drafting the final report. You are asked to assume the role of a veteran of...
-
Write a java programme named Adding Numbers.java that uses a method to sum all the integers from 10 to 20 but skipping 15 and 16. Invoke the method within the print command line to print: The sum of...
-
The children (see Problem 58) decided to call in a very wise judge to help in the distribution of the rancher's estate. They informed the judge that the 17 horses were not of equal value. The...
-
The Game of WIN Construct a set of nonstandard dice as shown in Figure 17.1. Suppose that one player picks die \(A\) and that the other picks die \(B\), the dice are rolled, and the higher number...
-
Matt Damon is six years younger than Sandra Bullock. The sum of their years of birth is 3,934 . In what year was Matt born?
-
The graph in Figure 18.19 shows the height h of a projectile after \(t\) seconds. In Problems 5-8, find the average rate of change of height (in feet) with respect to the requested changes in time...
-
A manufacturer of auto accessories uses three basic parts, A, \(\mathrm{B}\), and \(\mathrm{C}\), in its three products, in the following proportions: The inventory shows 1,250 of part A, 900 of part...
-
1. Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond = 7.72%AAA = 8.72% A = 9.64% BBB = 10.18%. The differences in these rates were probably caused primarily...
-
d. The characteristic equation of a control system is given by s+2s+8s+12s+20s+16+16=0. Determine the number of the roots of the equation which lie on the imaginary axis of s-plane
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-4. Ivan and Irene paid the following in 2012 (all by check or can otherwise be...
-
In 2012, Michael has net short-term capital losses of $2,000, a net long-term capital loss of $45,000, and other ordinary taxable income of $45,000. a. Calculate the amount of Michael's deduction for...
-
How much of each of the following prizes or awards is taxable? a. Cheline received a $50,000 gift bag at the Oscars in 2012. b. Jon received a gold watch worth $350 for 25 years of service to his...
-
The annuity provides the highest income stream to the individual. A. Installment refund annuity. B. Joint and survivor annuity. C. Period certain. D. Single life annuity.
-
The key to successful planning for financial independence is to A. Accurately estimate an inheritance. B. Accurately estimate lifestyle needs. C. Accurately estimate the Consumer Price Index. D....
-
Which are true regarding an annuity? I. It is a contractual obligation to make periodic payments. II. The payments may be paid at some future date. III. The payments must begin immediately. IV. The...
Study smarter with the SolutionInn App