Question

During the current year M sold all of her class 10 property to Q Inc., a corporation controlled by M. The property, which originally cost $120,000, was valued at $60,000. The UCC of class 10 at the beginning of the current year was $80,000. What is the amount of the decrease to M’s net income for tax purposes, if any, for the current year as a result of the sale of the class 10 property?

Answer 1

the amount of the decrease to M's net income for tax purposes are $18000 for sale of class 10 property

Then original cost of clan to propering kalued of clan to property uce of clan is at the begginning $120000 $60000 of the comapt year $80000 Solution uce at begginning of clans to $ 800 [160000] Disposal of ants Capital cost $12000 Dedent proceds hand) &60000 uce after disposition sedut / of net anwent $20000 doo $10000 $ 2000 Reduct: CCA at 20%. $8000 $1000 add / of net amount uce at the end of current year & 18000 for sale of clan to property M need to decrease net income of $1800 for tangan due to for Result of sale in class 10 proper