Chapter 10, Problem 3DQ

What items are excluded from the statutory definition of Capital Asset? Why?

What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital loss’ and a ‘capital loss’? Are net capital losses deductible?

1. What is the definition of a fixed asset and which expenditures can be added to the capitalized cost of a fixed asset? 2. Please define the term "Net book value."

what is the important difference in the acquisition and payment of long-lived assets compared to those of current assets? Briefly explain.

2. Which of the following situations will result in a future deductible amount?  Carrying amount of the asset > tax base of the asset Tax base of the asset > carrying amount of the asset Carrying amount of the liability < tax base of the liability Financial income > Taxable income