What is tax consequence associated with margaret disposition

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Problem 1: Margaret purchased property in 1995 that was comprised of a building and land. The total purchase price was $150,000 where $60,000 was allocated to the land and $90,000 to the building. Margaret sold the property this year for $330,000. At the time of sale, a valuation confirmed that the land represented the same proportion of the total value as when the property was originally purchased. During the time that Margaret owned the property, she claimed $20,000 in capital cost allowance. What is the tax consequence associated with Margaret's disposition of the property?

A) A capital gain of $128,000 only
B) A capital gain of $160,000 only
C) A taxable capital gain of $90,000 only
D) Taxable income of $110,000 only

Reference no: EM132916800

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