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. |
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| 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. |
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| 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. |
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| 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? |
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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
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
