What is the amount of the amortization of the unrealized gain for 2016 arising from the transfer of John's assets?
A) Nil
B) $18,000
C) $42,000
D)$60,000

Question

Quizplus · Accepted Answer

The amortization of the unrealized gain for 2016 will be equal to the difference between the fair market value of John's assets at the time of transfer ($400,000) and their adjusted cost base ($382,000), which is $18,000. Therefore, the correct answer is B.

What Is the Amount of the Amortization of the Unrealized