Morris Ltd. (owned by Martin Morris) has only one Class 1 building. During 2020, the Company...

 

Transcribed Image Text:

Morris Ltd. (owned by Martin Morris) has only one Class 1 building. During 2020, the Company disposes of the building and replaces it with a leased property. The following information relates to this disposition: Proceeds of Disposition Allocastion Land (Estimated Value) Building (Estimated Value) Tolal Proceeds of Disposition Adjusted Cost Base of Land Original Cost of Building UCC Class 1 $ 300,000 110,000 $ 410,000 $ 200,000 175,000 150,000 Requirement: In the absence of a special rule, calculate the tax implications of the disposal of the building, and the amount to be included in the Net Income for Tax Purposes. Morris Ltd. (owned by Martin Morris) has only one Class 1 building. During 2020, the Company disposes of the building and replaces it with a leased property. The following information relates to this disposition: Proceeds of Disposition Allocastion Land (Estimated Value) Building (Estimated Value) Tolal Proceeds of Disposition Adjusted Cost Base of Land Original Cost of Building UCC Class 1 $ 300,000 110,000 $ 410,000 $ 200,000 175,000 150,000 Requirement: In the absence of a special rule, calculate the tax implications of the disposal of the building, and the amount to be included in the Net Income for Tax Purposes.

Answer rating: 100% (QA)

To calculate the tax implications of the disposal of the building and the amount to be included in t... View the full answer