In each of the following Cases, indicate whether you believe that the tax treatment being proposed is the correct one. Explain your conclusion.

Case A:

During the current year Ms. Kristy Stone sold her sailboat for $71,000. She purchased the boat several years ago for $51,000. Also, during the year, she sold shares with an adjusted cost base of $22,000 for $12,000. She intends to deduct the loss on the shares against the gain on the sailboat.

Case B:

During the current year, Ignacio Rogers sells a non-depreciable capital asset for $216,000. The adjusted cost base of the asset was $184,000, resulting in a capital gain of $32,000. Under the terms of the sale, he will receive 10 percent ($21,600) of the proceeds in the current year, with the remainder being due early in the following year. As a result, he will recognize $3,200 of the capital gain in the current year.