3. On the 5 August 2009 Mr Bell's mother-in-law, Mrs Peel, gave him the following birthday presents: . Two scratch and match lottery tickets. One of the tickets won him $2,000. He collected this amount on 20 August 2009 and used the money to buy shares in a public company. He sells the shares on 1 January 2010 for $3,500. . A gold ring. The ring had been purchased by Mrs Peel for: (a) $400; or (b) $700 on 1 October 2000 (its market value on 5 August 2009 was $5,000). Mr Bell sells the ring for $7,000 on 29 June 2010. Required: Advise Mr Bell, and Mrs Peel, of any CGT consequences in respect of the gifts and transactions.

3. On the 5 August 2009 Mr Bell's mother-in-law, Mrs Peel, gave him the following birthday presents: . Two scratch and match lottery tickets. One of the tickets won him $2,000. He collected this amount on 20 August 2009 and used the money to buy shares in a public company. He sells the shares on 1 January 2010 for $3,500. . A gold ring. The ring had been purchased by Mrs Peel for: (a) $400; or (b) $700 on 1 October 2000 (its market value on 5 August 2009 was $5,000). Mr Bell sells the ring for $7,000 on 29 June 2010. Required: Advise Mr Bell, and Mrs Peel, of any CGT consequences in respect of the gifts and transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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