Since 1997 Andreas and Steve have invested in various Australian shares. Steve acquired the sharesin her own name whereas Andreas had his company Hunter Valley Ltd acquire his share portfolio, On20 August 2021 both Steve and Andreas made a decision to dispose of their Australian shares andthe proceeds and purchase prices information are as follows.steve's share portfolioPurchase date Costs$8,000SharesProceedsMining Ltd1-Apr-97$12,400$90,000$33,50010-Jun-00$15,000$34,000$17,900Media LtdTel Ltd17-May-13Singapore Ltd8-Jan-21$21,000Hunter Valley Ltd Share porfolioSharesPurchase date CostsProceeds28- Mar- 18$45,000$62,000Xero LtdSingapore26-Jun-21$21,600$28,800Other information Cynthia has a capital loss of $600 carried forward from sale of painting during2018.Advise both Steve and Andreas on the CGT consequences of their share sales.

Long-Term Capital Gain: A long-term financial gain or loss is the gain or loss stemming from…

Since 1997 Andreas and Steve have invested in various Australian shares. Steve acquired the shares in her own name whereas Andreas had his company Hunter Valley Ltd acquire his share portfolio, On 20 August 2021 both Steve and Andreas made a decision to dispose of their Australian shares and the proceeds and purchase prices information are as follows. steve's share portfolio Proceeds $12,400 $90,000 $33,500 $21,000 Purchase date Costs 1-Apr-97 Shares Mining Ltd Media Ltd Tel Ltd $8,000 10-Jun-00 $15,000 17-May-13 $34,000 $17,900 Singapore Ltd 8-Jan-21 Hunter Valley Ltd Share porfolio Shares Purchase date Costs Proceeds $62,000 $28,800 Xero Ltd 28- Mar- 18 S45,000 Singapore 26-Jun-21 $21,600 Other information Cynthia has a capital loss of $600 carried forward from sale of painting during 2018.

Since 1997 Andreas and Steve have invested in various Australian shares. Steve acquired the shares in her own name whereas Andreas had his company Hunter Valley Ltd acquire his share portfolio, On 20 August 2021 both Steve and Andreas made a decision to dispose of their Australian shares and the proceeds and purchase prices information are as follows. steve's share portfolio Proceeds $12,400 $90,000 $33,500 $21,000 Purchase date Costs 1-Apr-97 Shares Mining Ltd Media Ltd Tel Ltd $8,000 10-Jun-00 $15,000 17-May-13 $34,000 $17,900 Singapore Ltd 8-Jan-21 Hunter Valley Ltd Share porfolio Shares Purchase date Costs Proceeds $62,000 $28,800 Xero Ltd 28- Mar- 18 S45,000 Singapore 26-Jun-21 $21,600 Other information Cynthia has a capital loss of $600 carried forward from sale of painting during 2018.

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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