Evergreen Trees Inc

question 6

Essay

Evergreen Trees Inc. is a CCPC operating in your province. The company has a December 31^st year-end.
Three asset sales occurred prior to the end of 20x1. The following information pertains to the net gain on the sale of the assets.
Asset 1: Building
The building was previously purchased for $90,000. At the time of the sale in 20x1, the accumulated amortization on the building was $10,000. The UCC balance was $65,000. The full payment of $110,000 was received before the end of the year.
Asset 2: Land
The land was purchased for $200,000 and sold in 20x1 for $250,000. Proceeds of $60,000 will be received this year. The remainder of the payment will be received in equal installments over the next eight years.
Asset 3: Marketable Securities
The company sold its entire public portfolio this year. The adjusted cost base of the shares was $100,000. The market value of the shares at the time of sale in 20x1 was $135,000. Selling costs on the sale were $5,000.
Required:
A) Calculate Evergreen Trees Inc.'s minimum taxable capital gain for 20x1.
B) Calculate Evergreen Trees Inc.'s minimum taxable capital gain for 20x2.

Definitions:

Systematic Name

A name given to a chemical substance based on a standardized set of rules, allowing its unique identification.

Systematic Name

The name of a chemical substance based on a specific set of rules, allowing for its unique identification based on its structure.

Compound

A product of two or more elements chemically combined.

Compound

A substance made up of two or more elements chemically combined in a fixed proportion.