John owns land with an adjusted cost base of $250,000 and a fair market value...
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Accounting
John owns land with an adjusted cost base of $250,000 and a fair market value of $320,000. He gifts the land to his son for no consideration. Which of the following statements is correct?
a. John will have a taxable capital gain of $35,000 and the adjusted cost base of the land to his son will be $320,000.
b. John will have a taxable capital gain of $70,000 and the adjusted cost base of the land to his son will be $320,000.
c. John will have a taxable capital gain of $35,000 and the adjusted cost base of the land to his son will be $250,000.
d. John will have a taxable capital gain of $70,000 and the adjusted cost base of the land to his son will be $250,000.
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