Calculate the amount of the taxable capital gain

Assignment Help Accounting Basics
Reference no: EM132760080

Problem - In early 2019, Mr. Rob advises you that it is his intention to sell both his Hamilton home and his cabin in Algonquin. He acquired the Hamilton home in 2005 and the Algonquin cabin in 2009. He has spent at least a part of each subsequent year in residence at each property. The cost of the Hamilton house was $173,000, while the Algonquin cabin was $131,000. He provides you with the following additional information:

Hamilton Home Algonquin Cabin

Estimated Selling Price $525,000 $210,000

Anticipated Selling Costs 13,500 12,240

He has asked you to determine the minimum taxable capital gain that would result from the sale of the two properties during 2019. Calculate the amount of the taxable capital gain that would arise for each property.

Reference no: EM132760080

Questions Cloud

What will be the price of the bond in three years : The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 8 percent yield to maturity, due to mature 15 years from today.
What is the role of the anz bank : When it is first issued at a yield of 4.75% pa and sell it 30 days later to Prudential Investments at a yield of 4.55% pa. What is the role of the ANZ bank?
Describe different categories of financial assets : Explain the different categories of financial assets (such as passive investments) and their measurement under IFRS and ASPE. Note: Use IFRS 9 as the IFRS.
What information in the two amortization schedules would be : What information in the two amortization schedules would be included in the lessee's financial statements or the lessee's notes to its financial statements.
Calculate the amount of the taxable capital gain : The cost of the Hamilton house was $173,000, while the Algonquin cabin was $131,000. Calculate the amount of the taxable capital gain
What is the current value of a new start share today : According to the prospectus of New Start Ltd, If the required return is 15%, what is the current value of a New Start share today?
What would be the expected market price for the bond : The par value of the current 25-year 10% bond of PTR Ltd is $2,000. The bond has a remaining life of 12 years and the coupon is paid quarterly.
Identify who the stakeholders are in this situation : If you were the Ethical Accountant providing advice to Ling, identify who the stakeholders are in this situation, what disclosures are required
What is the bond price for bavarian sausage : The bond makes semi-annual coupon payments. If the required return on the bond is 10% pa compounding half-yearly, what is the bond's price?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd