Question
During 2020, John Seed sold a piece of land with an adjusted cost base of $250,000 for total proceeds of $2,000,000. John received $500,000
During 2020, John Seed sold a piece of land with an adjusted cost base of $250,000 for total proceeds of $2,000,000. John received $500,000 in 2020 and accepted a note for the balance as follows: 2021 2022 2023 2024 $400,000 $400,000 $400,000 $300,000 John deducts the maximum possible capital gains reserve. Required: Calculate the taxable capital gain that should be included in John's taxable income in 2020 and 2021. (5 marks)
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Intermediate Accounting Volume 1
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
7th Edition
1260306747, 978-1260306743
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