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mc_s_14_16

# mc_s_14_16 - x gain of years the property was owned...

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MULTIPLE CHOICE QUESTIONS SOLUTIONS Q14. (i) (c) \$900,000 the lesser of: (i) \$2,000,000 x \$1,350,000 = \$900,000; and \$3,000,000 (ii) (1/5 x \$1,350,000) x (4-0) = \$1,080,000 (ii) (c) \$810,000 the lesser of: (i) \$2,000,000 x \$1,350,000 = \$900,000; and \$3,000,000 (ii) (1/5 x \$1,350,000) x (4-1) = \$810,000 Q15. (a) \$2,500 taxable capital gain on Home B . Home B owned 2007, 2008, 2009, and 2010 = 4 years . 2007 and 2008 designated to Home A . 2009 and 2010 can be used for Home B = 2 years exempt portion = 1 + the number of years the property was designated
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Unformatted text preview: x gain # of years the property was owned realized = 1+ 2 x \$(200,000 - 180,000) = 15,000 4 Capital gain = \$20,000 - 15,000 = \$5,000 Taxable capital gain = \$5,000 x 1/2 = \$2,500 Q16. (i) (c) \$156,250 The lesser of: (i) \$250,000 x \$250,000 = \$156,250 and \$400,000 (ii) (1/5 x \$250,000) x (4 - 0) = \$200,000 (ii) (c) \$78,125 The lesser of: (i) \$125,000 x \$250,000 = \$78,125 and \$400,000 (ii) (1/5 x \$250,000) x (4 - 1) = \$150,000 Page 1...
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