QUESTION 10

1. Joan disposed of two residential properties during the year. The details of the dispositions are as follows:

   Proceeds Cost Years Owned

   Cottage $650,000 $300,000 2017-2021

   House $800,000 $300,000 2014-2021

   What is the minimum taxable capital gain that must be included in Joan's 2021 personal tax return?

   		167,500
   		93,750
   		30,000
   		95,000

2. On April 1, 2007, Monica purchased a condominium in Hamilton, Ontario, for $120,000. She lived in the condominium until she married in August 2013. At that time, she moved into a rented apartment in north Toronto, Ontario, with her new husband. She commenced to rent her condominium in late 2013, at which time it was valued at $150,000. In November 2021 she sold the condominium for $200,000 to generate some cash to pay for a new house. Assuming that Monica elected under subsection 45(2) in respect of the condominium in 2013, what is the approximate minimum taxable capital gain that she will realize in 2021 on the sale?

   		50,000
   		35,714
   		8,000
   		48,929