1. Larry is moving permanently to Utah to retire. All of the assets below are deemed to be disposed of at FMV. Since Larry is never planning on returning to Canada, he will want to use as many capital losses as he is allowed to use.

Adjusted Fair market Cost Base value

Stamp collection $11,000 $ 6,000

Racing boat 60,000 80,000

Oil Painting 25,000 28,000

Antique Automobile 25,000 18,500

Wedding ring 800 1,200

Shares in XYZ co. 4,400 5,000

Calculate the total capital gain or loss that must be reported on Larry's tax return. Since Larry is never planning on returning to Canada, he will want to use as many capital losses as he is ALLOWED to use.

2. A building costing $68,000 was destroyed resulting in $84,000 insurance proceeds. The building was replaced within one year, costing $80,000. The capital gain from this series of events is