Determine the loss to be reported for tax purposes for each of the following dispositions....
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Accounting
Determine the loss to be reported for tax purposes for each of the following dispositions.
a) Brett sold his home for $385,000.The house cost $425,000 when it was purchased.
b) Caleb sold 150 shares of CheeseMan Ltd. for $15,000 on December 20th, 2015. The ACB of the 150 shares was $22,000. On January 6, 2016, the value of CheeseMan Ltd. declined further and Caleb repurchased 60 shares of CheeseMan Ltd. for $4,800.
c) Marcus transferred shares of Milky Ltd. worth $12,000 to his RRSP. He paid $16,700 for the shares when he purchased them two years ago.
d) On June 30, 2016, Goodman Inc. sold its investment in shares of Redneck Ltd. (2% of Rednecks outstanding shares) to Newborn Inc. for $50,000. The shares had been acquired 3 years previous for $70,000. Megan is the controlling shareholder of both Goodman Inc. and Newborn Inc. In February, 2017, Newborn Inc. sold the shares of Redneck Ltd. for $74,000. The taxation year end for Newborn Inc. and Goodman Inc. is December 31.
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