In July 2021, Jake bought 20 hectares of land for £204,800. In October 2022, Jake sold four hectares of the land for £64,000 when the market value of the remaining 16 hectares was £192,000.Prior to the sale, Jake incurred costs of £4,000 levelling out the four hectares of land being sold.Indicate, by matching the relevant amounts, the original acquisition cost and enhancement expenditure which Jake may deduct when calculating his chargeable gain in respect of thedisposal in October 2022.Costs£800£1,000£4,000£40,960£51,200£204,800Original acquisition costEnhancement expenditure

When an amount of expenditure is incurred on an asset for the purpose to enhance the value of the…

Answered: mdicate, by matching the relevant…

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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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
In 2020/21 Clive had taxable income (after deducting the personal allowance) of £33,000 and he made the following disposals in the year:i) In May 2020 he sold part of a set of silver cutlery that was originally acquired in March 2014 for £19,000 and costs of acquisition were £500. He received proceeds of £25,400. The market value of the remaining cutlery was £29,000.ii) In June 2020 he sold a painting for net proceeds of £5,100. He had bought the painting for £12,250 in July 2015.iii) In July 2010 he had acquired a 25-year copyright at a cost of £60,000. In July 2020 he sold the copyright for £71,000.iv) In August 2020 he sold 1,900 shares in Glug plc for £7.20 each. His shareholding in Glug plc was acquired as follows:• May 2013 - purchased 1,800 shares at a cost of £2.20 each.• April 2015 – there was a 1 for 10 rights issue by Glug plc at £1.90 pershare and Clive acquired all the shares to which he was entitled.• October 2017 - purchased 3,500 shares at a cost of £3.15 each.v) In…
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In 2021 an investor sold capital property for $80,000. The cost base of the property was $55,000. The investor agreed to the following payment schedule: $35,000 in 2021, $25,000 in 2022 and $20,000 in 2023. The investor elects to use the deferred proceeds method to report taxable income from this sale. How much would be the taxable capital gain reported by the investor in 2021? A. $20,000 B. $14,063 C. $10,938 D. $10,000 E. None of the above
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mdicate, by matching the relevant amounts, the original acquisition cost and enhancement expenditure which Jake may isposal in October 2022. Costs £800 £1,000 £4,000 £40,960 £51,200 Original acquisition cost Enhancement expenditure