mc_q_17_18 - MULTIPLE CHOICE QUESTIONS Q17 Susan Cousins...

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Q17. Susan Cousins purchased a house in Oshawa in March 2008, for $150,000. Even though Susan was unable to reside in the house immediately, she felt it was a good time to buy as the real estate market was depressed and mortgage rates were quite low. She was fortunate, however, to rent out the house as of April 2008. She moved back to Oshawa on January 1, 2010. Her tenants moved out on December 31, 2009 and she moved into her house. The fair market value of the house at January 1, 2010 was $155,000. Which of the following is true: (a) There is no capital gain on the house for tax purposes at January 1, 2010; (b) Susan must recognize a capital gain for tax purposes of $5,000 on the house at January 1, 2010; (c) Susan must recognize a capital gain for tax purposes of $2,500 at January 1, 2010; (d) Susan can make an election that results in the ability to defer the recognition of any capital gain until she disposes of the house. Page 1
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This note was uploaded on 02/05/2011 for the course ACTG 4720 taught by Professor Gaildrory during the Winter '11 term at York University.

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mc_q_17_18 - MULTIPLE CHOICE QUESTIONS Q17 Susan Cousins...

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