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(Solved): Martha runs a small business in Markham, Ontario. During the year, Martha sold her existing land and ...



Martha runs a small business in Markham, Ontario. During the year, Martha sold her existing land and building and acquired a new property. The proceeds on the sale of the land and building were allocated $324,000 to the land and $486,000 to the building. The original cost of the land and building was $206,000 and $454,000, respectively. The building had an undepreciated capital cost (UCC) of $323,000. Martha immediately moved into her newly acquired property. The $860,000 purchase price was allocated $360,000 to the land and $500,000 to the building. Martha wishes to minimize the impact of these transactions on her income to the extent possible.



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