Question 2(Note this question is from the Topic 8 Lecture: Capital Gains Tax)Ajay Ltd purchased a depreciating asset with the value of $5,000 on 31 March 1989. On thesame day, the company paid $50 to transfer the ownership. One year after, on 31 Marchthis company spent an additional $1,500 for the asset functionality improvement.Later, on 31 March 1992, the company moved to a new place, and paid $200 to transfer thisasset to the new location of business. Finally, the asset was sold in 2020 for $12,000 (IgnoreGST effect in all calculations of this question).1990,Calculate cost base, and capital gain (Loss), and capital gain tax, if any, considering Ajaydecided to index (if applicable) and the relevant corporate tax rate is 30%.

Assets: It is a resource that will generate future benefits and revenue for the company. It includes…

Answered: Calculate cost base, and capital gain…

Calculate cost base, and capital gain (Loss), and capital gain tax, if any, considering Ajay decided to index (if applicable) and the relevant corporate tax rate is 30%.

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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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

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