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Image (3) - 0 and 11 are based on the following uestions 1...

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Unformatted text preview: 0 and 11 are based on the following: uestions 1 ck Ltd. for $10,000. On December 21. 2004. Dorothy gifted all 1.000 shares to her daughter. Brick for $80,000. In 2005. lona was only In 1991. Dorothy purchased 1000 shares onellow Bri lues of the shares were $5.000. when the fair market va lona. On April 20, 2005, Iona sold the 1,000 shares onellow 10 years old. What is Dorothy’s taxable capital gain or allowable capital loss on the disposition of shares in 10. 2004? (a) S O 53 (2,500) c 3 (5,000) (d) s3 5,000 5 on the disposition of shares in 2005? Iona’s taxable capital gain or allowable capital los \ 11. What is (a) $0 rig-C 7 5'1”“ (in, $35,000 ’ icy $37,500 (a) $70,000 lies to questions 12 and 13 The following situation app in a fire in November of 20031 The insurance The office building that Shelagh owns was destroyed company provided compensation of $340,000 to replace the building. The land was sold to a developer for $200,000. Shelagh does not plan to replace the property until she finds a suitable building to carry out her business. The facts relating to the diSposition were as follows: Land Building Adjusted cost base $175,000 $310,000 - UCC, J an. 1, 2003 — 270,000 200,000 340,000 Proceeds Dee, 2003 as not replaced by December 31, 2003, Shelagh will need 12. , 111 2003, assuming that the property w come tax return: to report the following in her personal in (a) A disposition resul ,3 capital gain. . " ,_ A disposition resulting in a capital gain of $3 0,000 3*? rid)“, A disposition resulting in a capital gain of $55,000 and recaptured depreciation of , $40,000. ...
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