Mr. Ex Prop operates an unincorporated business with a December 31st year-end. On January 15, 2020, the building in which the business was located was expropriated by the provincial government to make way for the new super hospital. The land on which the building was situated was originally purchased in 2006 for $200,000. The building was erected in 2010 at a cost of $400,000. On June 1, 2020, after extended negotiations between Mr. Ex Prop and the provincial government, he sold the property and received compensation in the amount of $260,000 for the land and $600,000 for the building. On January 1, 2020, the UCC of the old building was $360,000.

In late 2021, a new property was purchaseD to continue Mr. Ex Prop's business for a total cost of $1,000000, of which $300,000 was for the land, with the remaining $700,000 being for the building.

Required:

In a concise point form schedule format, detail the taxable income impact regarding the above transactions, specifically:

A. The taxable income impact due to the expropriation sale in 2020;

B. The taxable income impact regarding the acquisition of a new property in 2021, assuming that all tax relief electionsare claimed regarding any possible tax relief pursuant to refiling the 2020 tax return; and

C. What is the ACB and UCC of the new property that was acquired in 2021.

Answer rating: 100% (QA)

A The taxable income impact due to the new property purchase in 2021 The taxable income impact due t... View the full answer