y Nurseries Ltd. is a Canadian controlled private corporation operating in your province mpany has a December 31st year-end. e following asset sales occurred prior to the end of 2019. set 1: Land e land was purchased for $300,000 and sold in 2019 for $350,000. set 2: Marketable Securities
y Nurseries Ltd. is a Canadian controlled private corporation operating in your province mpany has a December 31st year-end. e following asset sales occurred prior to the end of 2019. set 1: Land e land was purchased for $300,000 and sold in 2019 for $350,000. set 2: Marketable Securities
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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Transcribed Image Text:Tiny Nurseries Ltd. is a Canadian controlled private corporation operating in your province. The
company has a December 31st year-end.
The following asset sales occurred prior to the end of 2019.
Asset 1: Land
The land was purchased for $300,000 and sold in 2019 for $350,000.
Asset 2: Marketable Securities
The company sold its entire public portfolio in 2019. The adjusted cost base of the shares was
$100,000. The market value of the shares at the time of sale in 2019 was $130,000. Selling costs
on the sale were $10,000.
Required:
A) Calculate Tiny Nurseries Ltd.'s minimum taxable capital gain for 2019.
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