Pickford v Quirke – CA 1927, 13 TC 251. A syndicate purchased a cotton-spinning mill with the intension of using it in a trade, however, on purchase of the mill it was in a worse state than first anticipated. They later decided to strip the mill of its assets and sell it piecemeal, making a profit. This was repeated a number of times with a number of mills. This was an example of : a. Capital transaction. b. Adventure in trade
Pickford v Quirke – CA 1927, 13 TC 251. A syndicate purchased a cotton-spinning mill with the intension of using it in a trade, however, on purchase of the mill it was in a worse state than first anticipated. They later decided to strip the mill of its assets and sell it piecemeal, making a profit. This was repeated a number of times with a number of mills. This was an example of : a. Capital transaction. b. Adventure in trade
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pickford v Quirke – CA 1927, 13 TC 251. A syndicate purchased a cotton-spinning mill with the intension of using it in a trade, however, on purchase of the mill it was in a worse state than first anticipated. They later decided to strip the mill of its assets and sell it piecemeal, making a profit. This was repeated a number of times with a number of mills. This was an example of :
a.
Capital transaction.
b.
Adventure in trade
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