Unformatted text preview: /. Class 1 building with a U.C.C. of $250,000 and an original cost of $300,000 is
transferred to the taxpayer’s corporation without a roll-over (tax free transfer).
The fair value of the building is $400,000, The taxpayer will incur: b) terminal loss of $50,000
c) no adjustment to prior CCA
d) none of the above RE) recapture of $50,000 \/ 30. Using the data of the prior question the taxpayer will also incur a: a) taxable capital gain of $25,000 @ taxable capital gain of $50,000 \/
c) taxable capital gain of $75,000 d) none of the above 31. Using the data of question 29, the U.C.C. of the building to the purchaser will be: a. 250,000
©350000 d. 300,000 32. A rental building purchased in 2005 for $1,000,000 has a U.C.C. of $980,000
in 2007. The rental loss per financials is 140,000. Included in the rental loss
is depreciation expense of $100,000, and non—deductible tax expenses of 50,000.
The maximum deductible CCA available on the building in 2007 is:
Ottawa *> a. 10,000
b. 40,000 K
c. 39,200 ‘
Q9 0 33. A taxpayer’s major occupation is not farming. He incurs a loss of $30,000 from farm
operations. The most he can deduct from farming in the year from other income on his T1 is:
d. 15,000 34. The unused farming loss from question 33. can be applied only against farming
income earned in the previous 3 years and for the subsequent 8 ye rs. True raise
1 2. ...
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- Spring '11