MULTIPLE CHOICE QUESTIONS
Janna Limited (JL) is a manufacturing company.
In November 1998, JL
purchased a parcel of land, for $1,500,000 on which it planned to build a new
Due to the downturn in the economy and the corresponding decrease in
demand for their product, the company agreed, in June 2008, to sell the land to an
interested party for $3,000,000.
$1,000,000 of the proceeds were received in June
2008 with the remaining $2,000,000 due in June 2010.
JL has a December 31
year end for taxation purposes and has been advised that capital gain treatment
will be given to the transaction.
Costs associated with the sale of the land totalled
JL can claim a reserve on the above sale at December 31, 2008 of:
JL can claim a reserve on the above sale at December 31, 2009 of:
A. Winestock owned two homes for a two-year period from 2005 to 2007. He had