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Frank owns land with an adjusted cost base of $325,000 and a fair market value of $425,000. He gifts the land to his son for

Frank owns land with an adjusted cost base of $325,000 and a fair market value of $425,000. He gifts the land to his son for no consideration i.e., for $0. Which of the following statements is correct?

a)

Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $325,000.

b)

Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $325,000.

c)

Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $425,000.

d)

Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $425,000

When a business makes payments that are unreasonable in the circumstances, they cannot be deducted in the calculation of either accounting Net Income or net business income. True/ False?

When a business makes payments that are unreasonable in the circumstances, they cannot be deducted in the calculation of either accounting Net Income or net business income.
True/ False
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Frank owns land with an adjusted cost base of $325,000 and a fair market value of $425,000. He gifts the land to his son for no consideration i.e., for $0. Which of the following statements is correct? a) Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $325,000. b) Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $325,000. c) Frank will have a taxable capital gain of $50,000 and the adjusted cost base of the land to his son will be $425,000. d) Frank will have a taxable capital gain of $100,000 and the adjusted cost base of the land to his son will be $425,000

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