Question

Sabrina sold her farm—a qualified farm and fishing property under the Income Tax Act—for proceeds of $950,000; the adjusted cost base of the property is $150,000. Sabrina has not previously disposed of qualified capital property in any form. What is the MINIMUM amount on which Sabrina must pay tax as a result of the disposition of her farm? a) $400,000 b) $800,000 c) $0 d) $950,000

          Sabrina sold her farm—a qualified farm and fishing property under the Income Tax Act—for proceeds of $950,000; the adjusted cost base of the property is $150,000. Sabrina has not previously disposed of qualified capital property in any form. What is the MINIMUM amount on which Sabrina must pay tax as a result of the disposition of her farm?
a) $400,000
b) $800,000
c) $0
d) $950,000

Show more…

Sabrina sold her farm—a qualified farm and fishing property under the Income Tax Act—for proceeds of 950,000; the adjusted cost base of the property is150,000. Sabrina has not previously disposed of qualified capital property in any form. What is the MINIMUM amount on which Sabrina must pay tax as a result of the disposition of her farm?
a) 400,000
b)800,000
c) 0
d)950,000

Added by Robert S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

08/08/2023

Step 1

This is done by subtracting the adjusted cost base from the proceeds: Capital gain = Proceeds - Adjusted cost base Capital gain = $950,000 - $150,000 Capital gain = $800,000 Show more…

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