Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a business asset with a capital cost of $100,000 and a UCC of $80,000 is converted to personal use at a time when its

If a business asset with a capital cost of $100,000 and a UCC of $80,000 is converted to personal use at a time when its fair market value is $150,000, which of the following statements is NOT correct?

Select one:

a.The capital cost for CCA purposes will be $125,000.

b.The capital cost for capital gains purposes will be $150,000.

c.The deemed disposition will create recapture of $20,000.

d.The deemed disposition will create taxable capital gain of $25,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Cost Management

Authors: Don R. Hansen, Maryanne M. Mowen

4th edition

1305970667, 978-1337514842, 1337514845, 978-1305970663

More Books

Students also viewed these Accounting questions