erry purchased a boat on 4 June 1986 for $10 500 which he used on holidays and at week-ends to do some fishing. The fish caught were eaten by Jerry and his family. He used the boat until 20 January of the current income year when he sold it for $18 000. Jerry’s capital gain/(loss) (to the nearest $) on the disposal of the boat using the indexed cost base method is: Select one: 1. $8000 gain. 2. $864 gain. 3. $7500 gain. 4. $17 136 gain. 5. $3750.
erry purchased a boat on 4 June 1986 for $10 500 which he used on holidays and at week-ends to do some fishing. The fish caught were eaten by Jerry and his family. He used the boat until 20 January of the current income year when he sold it for $18 000. Jerry’s capital gain/(loss) (to the nearest $) on the disposal of the boat using the indexed cost base method is: Select one: 1. $8000 gain. 2. $864 gain. 3. $7500 gain. 4. $17 136 gain. 5. $3750.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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erry purchased a boat on 4 June 1986 for $10 500 which he used on holidays and at week-ends to do some fishing. The fish caught were eaten by Jerry and his family. He used the boat until 20 January of the current income year when he sold it for $18 000. Jerry’s
Select one:
1.
$8000 gain.
2.
$864 gain.
3.
$7500 gain.
4.
$17 136 gain.
5.
$3750.
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