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2) When there is an involuntary disposition of a depreciable asset, any resulting capital gain can be eliminated if the asset is replaced by an

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2)

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When there is an involuntary disposition of a depreciable asset, any resulting capital gain can be eliminated if the asset is replaced by an asset of equal or greater value, no later than the end of the second taxation year following the disposition. True False Which of the following statements is NOT correct? When there is a disposition of an identical property, the taxpayer must use the average cost of all such properties as the adjusted cost base. When a taxpayer provides a warranty on the sale of a capital asset, the cost incurred to provide the warranty is treated as a capital loss. When there is a partial disposition of land that is held as a capital asset, the adjusted cost base must be based on a proportionate share of the total area of the land. When a bad debt arises from the sale of a capital asset, its writeoff must be treated as a capital loss

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