Mr. Helms Acquired two tracts of Land near Ottawa 5 years ago. Tract A cost $71000, while Tract B cost $87000. On July 1, 2015, Tractv A is sold for $127000. the terms of the sale require a down payment of $17000. a payment of $25000 is required on January 1, 2016.

Also on July 1, 2015, Tract B is sold for $106000. the terms of the sale require a down payment of $32000. Not further payment on the principal amount is required for five years.

Required: 

Determine the amount of the minimum taxable capital gains that will have to be included in Ms. helm's net income for tax purpose for both 2015 and 2016.

Answer rating: 100% (QA)

Solwlon Track A Troct B Cozt 7l000 SP 106000 Dowm payment C2015 l7000 32000 25000 pown pay... View the full answer