MC-Class-CapGains

MC-Class-CapGains - CAPITAL GAINS MULTIPLE CHOICE 1....

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CAPITAL GAINS MULTIPLE CHOICE 1. Jacques sold a set of stamps in 20X8 for $1,000. The stamps cost him $2,000. He had no other dispositions of listed personal property in 20X8 or in any prior year. In 20X9, he sold some stamps for $5,000. These stamps cost $3,000. Jacques’s net taxable capital gain in 20X9 is: (a) $2,000 (b) $1,000 (c) $750 (d) $500 (e) none of the above 2. In 20X0 Mr. T acquired land at a cost of $50,000. He sold the land for $225,000 in 20X5. The terms of sale called for a $30,000 down payment on closing, and a $19,500 yearly principal payment on the mortgage which was taken back by Mr. T as consideration for the sale. The principal payments are to commence in 20X6. Mr. T’s net taxable capital gain in 20X5, assuming he claims the maximum capital gains reserve, is: (a) $175,000 (b) $35,000 (c) $26,250 (d) $17,500 (e) none of the above 3. During 20X9, Mr. Jones sold the following personal assets. Asset Sold Cost Proceeds of Disposition Coins $1,400 $ 800 Painting 3,200 4,700 Mr. Jones’s taxable capital gain is: (a) $550 (b) $750 (c) $825 (d) $1,500 (e) none of the above
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4. Kirk, a self-employed businessman, sold one of his many Class 8 assets for $15,000. He paid $18,000 for the asset several years ago. UCC of the class before the disposition is $180,000. What is Kirk’s taxable capital gain/ (allowable capital loss)? (a) $1,500 (b) $(1,500) (c) $(2,250) (d) $0 (e) none of the above 5. Omar, a self-employed businessman, sold one of his many Class 8 assets for $15,000. He paid $12,000 for the asset several years ago. UCC before the disposition is $68,000. What is Omar’s taxable capital gain? (a) $3,000
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This note was uploaded on 01/07/2012 for the course ACCT 4453 taught by Professor Gorman during the Spring '11 term at Dalhousie.

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MC-Class-CapGains - CAPITAL GAINS MULTIPLE CHOICE 1....

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