Bob sold the following assets in the current year: A piece of furniture purchased for...
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Bob sold the following assets in the current year: A piece of furniture purchased for $900 and sold for proceeds of $750 A car (for his personal use) originally purchased for $4,000 and sold for proceeds of $1,500 A gold chain with a cost of $800 was sold for proceeds of $1,500 Required: What is Bob's tax impact of the sale of assets? Solution: Furniture (PUP) Car (PUP) Gold Chain (LPP) Calculation of Capital Gain: Proceeds of disposition Adjusted cost base POD (applying $1,000 rule) ACB (applying $1,000 rule) Capital Gain (Loss) Inclusion rate Allowable capital loss $ $ Loss is denied $ Gain is subject to tax $
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