Solomon bought a capital property several years for $150,000. He sold theproperty to his best friend William for $260,000. William did not have the moneyto pay for the property. Being best friends and Solomon is not in need for all themoney right now and so, they agreed on an installment sale. They agreed to thefollowing:William will give Solomon $100,000 right now and then pay $40,000 per year overthe next 4 years.What is the capital gain that Solomon has to report for each year from the year ofsale subject to the capital gains inclusion rate of 50%? Show all your calculations.

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Capital Gain Calculation for Solomon Given Information Cost Price Solomons purchase price 150000 Sel... View the full answer