On 5 March 2021, Faith disposed of the following assets. ...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On 5 March 2021, Faith disposed of the following assets.
| Item | Purchase Price | Sale Price | Acquisition Date |
| a. Family home | $225,000 | $620,000 | July 2000 |
| b. Family car | $20,000 | $6,000 | March 2001 |
| c. Grandfather clock in lounge room | $14,800 | $17,000 | June 2010 |
| d. A 125-year old Chinese vase | $6,500 | $8,000 | September 2002 |
| e. Shares in Woolworths Ltd | $6,850 | $9,650 | February 2000 |
| f. Home fridge, washing machine and dryer | $3,000 | $800 | January 2002 |
| g. Painting by a local artist (later famous) | $500 | $5,500 | September 2000 |
| h. Diamond bracelet | $2,750 | $750 | April 2006 |
Required:
- Calculate Faiths gross capital gain or capital loss in respect of the disposal of each asset. For those assets which are subject to the CGT discount method, show the undiscounted capital gain (ie the notional capital gain/loss).
- Calculate Faiths overall net capital gain or capital loss. Assume that Faith wishes to minimise her taxable income.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.