Provide this question general solution accounting Gareth, a sales tax registered trader, purchased a computerfor use in his business. The invoice for the computershowed the following costs related to the purchase.ComputerAdditional memoryDeliveryInstallation(in Pound)890951020Maintenance (one year) 251040Sales tax (17.5%)1821222TotalHow much should Gareth capitalize as a non-current assetin relation to the purchase?a) 920 Poundb) 910 Poundc) 1040 Poundd) 1015 Pound

Step 1: Define Non-Current AssetsNon-current assets are also known as fixed assets because they are…

Answered: Gareth, a sales tax registered trader,…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 14MCQ: In 2019, Mary sells for $24,000 a machine used in her business. The machine was purchased on May...

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What is the amount and nature of the gain from the sale
In 2019, Mary sells for $24,000 a machine used in her business. The machine was purchased on May 1,2017, at a cost of $22,000. Mary has deducted depreciation on the machine of $6,000. What is the amount and nature of Mary's gain as a result of the sale of the machine? $2,000 Section 1231 gain $8,000 ordinary income under Section 1245 $6,000 ordinary income and $2,000 Section 1231 gain $6,000 Section 1231 gain and $2,000 ordinary income under Section 1245 None of the above
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