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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

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.

Ask a homework question - tutors are online