Evergreen Trees Inc.is a CCPC operating in your province.The company has a December 31^st year-end.
Three asset sales occurred prior to the end of 20x1.The following information pertains to the net gain on the sale of the assets:
Asset 1: Building
The building was previously purchased for $90,000.At the time of the sale in 20x1,the accumulated amortization on the building was $10,000.The UCC balance was $65,000.The full payment of $110,000 was received before the end of the year.
Asset 2: Land
The land was purchased for $200,000 and sold in 20x1 for $250,000.Proceeds of $60,000 will be received this year.The remainder of the payment will be received in equal installments over the next eight years.
Asset 3: Marketable Securities
The company sold its entire public portfolio this year.The adjusted cost base of the shares was $100,000.The market value of the shares at the time of sale in 20x1 was $135,000.Selling costs on the sale were $5,000.
Required:
A)Calculate the minimum taxable capital gain that Evergreen Trees Inc.will have to report in 20x1.
B)Calculate the minimum taxable capital gain that must be reported in 20x2.

Question

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The Answer of Evergreen Trees Inc.is a CCPC operating in your province.The company has a December 31^st year-end. Three asset sales occurred prior to the end of 20x1.The following information pertains to the net gain on the sale of the assets: Asset 1: Building The building was previously purchased for $90,000.At the time of the sale in 20x1,the accumulated amortization on the building was $10,000.The UCC balance was $65,000.The full payment of $110,000 was received before the end of the year. Asset 2: Land The land was purchased for $200,000 and sold in 20x1 for $250,000.Proceeds of $60,000 will be received this year.The remainder of the payment will be received in equal installments over the next eight years. Asset 3: Marketable Securities The company sold its entire public portfolio this year.The adjusted cost base of the shares was $100,000.The market value of the shares at the time of sale in 20x1 was $135,000.Selling costs on the sale were $5,000. Required: