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Fung Wo purchased vacant land on a remote island off the coast of British Columbia...

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Accounting

Fung Wo purchased vacant land on a remote island off the coast of British Columbia on January 1,2020 for $50,000. She intended to re-sell it for a profit the next year but due to an oil spill, property values dropped. She was finally able to sell the vacant land for $45,000 on December 31,2023. In the meantime, she paid property tax of $500 each year. What are the income tax consequences of the sale in 2023?
Question 7Select one:
A.
an allowable capital loss of $2,500.
B.
an allowable capital loss of $3,500.
C.
a business loss of $5,000.
D.
a business loss of $7,000.

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