In 2021 an investor sold capital property for $80,000. The cost base of the property was $55,000. The investor agreed to the following payment schedule: $35,000 in 2021, $25,000 in 2022 and $20,000 in 2023. The investor elects to use the deferred proceeds method to report taxable income from this sale. How much would be the taxable capital gain reported by the investor in 2021? A. $20,000 B. $14,063 C. $10,938 D. $10,000 E. None of the above
In 2021 an investor sold capital property for $80,000. The cost base of the property was $55,000. The investor agreed to the following payment schedule: $35,000 in 2021, $25,000 in 2022 and $20,000 in 2023. The investor elects to use the deferred proceeds method to report taxable income from this sale. How much would be the taxable capital gain reported by the investor in 2021? A. $20,000 B. $14,063 C. $10,938 D. $10,000 E. None of the above
Chapter3: Income Sources
Section: Chapter Questions
Problem 86P
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Transcribed Image Text:In 2021 an investor sold capital property for
$80,000. The cost base of the property was
$55,000. The investor agreed to the following
payment schedule: $35,000 in 2021, $25,000 in
2022 and $20,000 in 2023. The investor elects to
use the deferred proceeds method to report
taxable income from this sale. How much would
be the taxable capital gain reported by the
investor in 2021?
A. $20,000
B. $14,063
C. $10,938
D. $10,000
E. None of the above
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ISBN:
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Author:
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Publisher:
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