Benjamin is an artist. He sold some assets last week. He requests you to calculate the Capital Gain Tax (CGT) consequences of the following transactions: He purchased the following items last eight months ago. an antique ceramic bowl (for $4,000),An antique vase (for $5,000),A colourful painting (for $15,000),A TV sound system for his personal use (for $10,000) andShares of a reputed Company (for $6,000) Last week he sold these assets as follows: an antique ceramic bowl (for $6,000),An antique vase (for $1,000),A colourful painting (for $ 5,000),A TV sound system for his personal use (for $9,000) andShares of a reputed Company (for $26,000) Based on the legal provisions, discuss capital gain tax assets and calculate his net capital gain or net capital loss for the current tax year

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Answered: is an artist. He sold some assets last…

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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Benjamin is an artist. He sold some assets last week. He requests you to calculate the Capital Gain Tax (CGT) consequences of the following transactions:

He purchased the following items last eight months ago.

an antique ceramic bowl (for $4,000),
An antique vase (for $5,000),
A colourful painting (for $15,000),
A TV sound system for his personal use (for $10,000) and
Shares of a reputed Company (for $6,000)

Last week he sold these assets as follows:

an antique ceramic bowl (for $6,000),
An antique vase (for $1,000),
A colourful painting (for $ 5,000),
A TV sound system for his personal use (for $9,000) and
Shares of a reputed Company (for $26,000)

Based on the legal provisions, discuss capital gain tax assets and calculate his net capital gain or net capital loss for the current tax year

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