During the current year of assessment, Ana sold her primary residence for R5 000 000. She originallypurchased this residence after 1 October 2001 for R3 600 000. She did not use any portion of the housefor trade purposes. You may assume that the original cost is the only allowable cost. Which of thefollowing statement is incorrect?Select one:a. The capital gain before any exclusion attributed to the sale of the primary residence is R1 400 000.b. The Proceeds from the sale of the primary residence are R5 000 000.c. Ana can claim the R2000 000 primary residence exclusion in full.O d. The base cost from the sale of the primary residence is R3 600 000.

Because the first R2 million of any gain or loss on disposal of a primary house is disregarded for…

During the current year of assessment, Ana sold her primary residence for R5 000 000. She originally purchased this residence after 1 October 2001 for R3 600 000. She did not use any portion of the house for trade purposes. You may assume that the original cost is the only allowable cost. Which of the following statement is incorrect?

During the current year of assessment, Ana sold her primary residence for R5 000 000. She originally purchased this residence after 1 October 2001 for R3 600 000. She did not use any portion of the house for trade purposes. You may assume that the original cost is the only allowable cost. Which of the following statement is incorrect?

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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