Mr.Yee sold a piece of land in 20X0 for $500,000.He originally paid $100,000 for the land.Selling costs totalled $15,000.The land is classified as capital property.The purchaser of the land paid Mr.Yee $80,000 in 20X0,and will pay $84,000 each year for the next five years.
Required:
Calculate the taxable capital gain that Mr.Yee will have to include in his income for tax purposes in 20X0 and 20X1.

Question

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The Answer of Mr.Yee sold a piece of land in 20X0 for $500,000.He originally paid $100,000 for the land.Selling costs totalled $15,000.The land is classified as capital property.The purchaser of the land paid Mr.Yee $80,000 in 20X0,and will pay $84,000 each year for the next five years.
Required:
Calculate the taxable capital gain that Mr.Yee will have to include in his income for tax purposes in 20X0 and 20X1.

MrYee Sold a Piece of Land in 20X0 for $500,000