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…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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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