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On January 1, 2017, John disposed of capital property that originally cost him $325,000 for proceeds of $750,000. However, the purchaser did not have enough
On January 1, 2017, John disposed of capital property that originally cost him $325,000 for proceeds of $750,000. However, the purchaser did not have enough cash on hand and therefore the payment terms were as follows:
- $250,000 on the day of sale
- $250,000 on June 30, 2017
- $50,000 on June 30, 2018
- $200,000 on June 30, 2019
Required: Calculate the minimum taxable capital gain that John will report in each of 2017, 2018, and 2019.
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