FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vendor sold land in 2021 for $80,000. The transaction was of a capital nature. The adjusted cost base of the land was $45,000. Purchaser agreed

Vendor sold land in 2021 for $80,000. The transaction was of a capital nature. The adjusted cost base of the land was $45,000. Purchaser agreed to pay Vendor the $80,000 in 5 equal, annual instalments of $16,000 beginning in 2021. What would be the amount of the taxable capital gain Vendor would recognize in 2021?

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

Federal Tax Accounting 2022

Federal Tax Accounting 2022

Authors: Frank L. Brunetti

1st Edition

080805631X, 9780808056317

More Books

Students also viewed these Accounting questions

Question

★★★★★
Finance is all about valuation-how to estimate asset values and what to do to increase them. We develop and use Excel models throughout the book. We start that process in this chapter with simple...

Answered: 1 week ago

Question

★★★★★
Let us toss a biased coin that comes up heads with probability p and assume the validity of the Strong Law of Large Numbers as described in Exercise 15. Then, with probability 1, Sn as n - 0. If f(x)...

Answered: 1 week ago

Question

★★★★★
Does the researcher report the sample composition by gender and other background characteristics, such as race or ethnicity and class?

Answered: 1 week ago

Question

★★★★★
On March 31, 2014, Taggert Company had a cash balance per books of $5,174.20. The statement from Western Bank on that date showed a balance of $6,041.40. A comparison of the bank statement with the...

Answered: 1 week ago

Question

★★★★★
In this problem you are requested to expand the previous problem so that the processes can be handled via the use of signals, in order to print their messages in a depth-first fashion. Every process...

Answered: 1 week ago

Question

★★★★★
1. Providing information on accountability is the primary financial reporting objective for both governmental and not-for-profit entities. True False 2. The maximum sets of fund financial statements...

Answered: 1 week ago

Question

★★★★★
Write a simplified printf subroutine that takes a variable amount of arguments. The first ar- gument for your subroutine is the format string. The rest of the arguments are printed instead of the...

Answered: 1 week ago

Question

★★★★★
1.Provide at least five years of Free Cash Flow Projections for the Company to be used to determine and calculate the intrinsic value of the Company. 2.Calculate the Valuation of the Company using...

Answered: 1 week ago

Question

★★★★★
A man wants to ensure an inflation-adjusted income for 25 years of $100 per monthfor the first year, increasing 5% each year for the next 24 years, but starting in 15 years' time . All the payments...

Answered: 1 week ago

Question

★★★★★
Your company needs to use an equipment for a project. If you decide to purchase it, you need to pay $60,000 today and the maintenance cost is $10,000 every year for three years (the first payment is...

Answered: 1 week ago

Question

★★★★★
i need a three substantive paragraphs. Is your organization unaffected by the global pandemic, or has your organization had to fundamentally re-examine its mission, vision and strategic goals? At the...

Answered: 1 week ago

Question

★★★★★
What changes to the existing hiring process in the Pacific Rim would you suggest to Kym and Gang Lim to improve the success of hires?

Answered: 1 week ago

Question

★★★★★
a score of 60 or higher on the test?

Answered: 1 week ago

Question

★★★★★
Suppose your employer asks you, the human resource manager, to justify the relatively large recruiting budget that you have historically been assigned. What arguments would you provide? What indices...

Answered: 1 week ago

Previous Question Next Question