Mario's Pizza has been suffering financial difficulties due to new local competition. They have decided to downsize and leave their premises of 15 years. Mario's Pizza has the following receipts: 1. $150,000 from pizza sales; 2. A gain of $12,000 from the sale of old delivery vehicles at a price greater than amount owed under the lease; 3. Proceeds from the sale of its pizza bar to a shopping centre (from which they now lease a smaller shop). Which of the receipts will be treated as capital receipt? O i, ii and iii O ii O iii ii and iii
Mario's Pizza has been suffering financial difficulties due to new local competition. They have decided to downsize and leave their premises of 15 years. Mario's Pizza has the following receipts: 1. $150,000 from pizza sales; 2. A gain of $12,000 from the sale of old delivery vehicles at a price greater than amount owed under the lease; 3. Proceeds from the sale of its pizza bar to a shopping centre (from which they now lease a smaller shop). Which of the receipts will be treated as capital receipt? O i, ii and iii O ii O iii ii and iii
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mario's Pizza has been suffering financial difficulties due to new local competition. They have
decided to downsize and leave their premises of 15 years.
Mario's Pizza has the following receipts:
1. $150,000 from pizza sales;
2. A gain of $12,000 from the sale of old delivery vehicles at a price greater than amount owed
under the lease;
3. Proceeds from the sale of its pizza bar to a shopping centre (from which they now lease a
smaller shop).
Which of the receipts will be treated as capital receipt?
O i, ii and iii
O ii
O iii
O ii and iii
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