Anna has been in the business of breeding stock horses on her 25 - acre property for the past 20 years. Now retiring from the business, Anna has decided to sub-divide and sell off her land in small parcels. She has been advised by her neighbours who have done the same thing that she will achieve a much better price for the farm by doing this. Anna engaged a surveyor and applied to the local council for the relevant development applications. Deciding to retain a block of 50 acres on which her house was situated and so that she could still keep a few horses. She then sub-divided the remaining land into forty blocks of five acres. All up the sub - division work cost Anna $200,000 which included removal of trees, land levelling and road clearing. In March 2023, Anna was $2,200,000 by a property developer for ten of the blocks. She accepted the offer and settlement took place in April 2023. The developer then went on to connect utilities and offer house and land packages for sale. Ten of the blocks remained unsold as at 30 June 2023. With reference to relevant legal authority, advise Anna of the taxation consequences of the sale of the blocks. Anna is registered for GST since July 2014.

Jagdeep sold his Indian restaurant “Maya no Dhaba” to Jasleen for the amount of $450,000. On top of that, Jasleen paid another $50,000 for Jagdeep to agreed that he won’t open a new Indian restaurant in the radius of 10 Kms for the next five years.Discuss whether the $50,000 payment is considered as Ordinary Income?

Glen Campbell owns a small office building adjacent to an airport. He acquired the property 10 years ago at a total cost of $608,000—that is, $70,000 for the land and $538,000 for the building. He has just received an offer from a realty company that wants to purchase the property; however, the property has been a good source of income over the years, and so Campbell is unsure whether he should keep it or sell it. His alternatives are as follows: a. Keep the property. Campbell's accountant has kept careful records of the income realized from the property over the past 10 years. These records indicate the following annual revenues and expenses: Campbell makes a $13,450 mortgage payment each year on the property. The mortgage will be paid off in eight more years. He has been depreciating the building by the straight-line method, assuming a salvage value of $80,700 for the building, which he still thinks is an appropriate figure. He feels sure that the building can be rented for another…

Angus and his sister Oona operate a small charter flight service that takes tourists on sightseeing tours over the beautiful Margaree River on Cape Breton Island. At the end of 2009, they had one four-seater plane in the aircraft asset class with a UCC of $30 000. In 2010, they purchased a second plane for $50 000. Business was going well in 2011, so they sold the old plane they had in 2009 for $15 000 and bought a newer version for $64 000. What was the UCC balance in the aircraft asset class at the end of 2012? The CCA rate for aircraft is 25 percent.