1. Josh is a builder and helping Greg at weekend to build his shed, Greg promised Josh to give him his old caravan (which cost him $12,000 on 1’st July 2000 when he bought it). Assume the shed was done on 1’st July 2020 when Greg handed over the Caravan to Josh. (Assume the value of Josh’s works was for $15,000, and the market value of the caravan was for $16,000) Discuss whether Josh needs to declare it as an ordinary income or not?

1. Josh is a builder and helping Greg at weekend to build his shed, Greg promised Josh to give him his old caravan (which cost him $12,000 on 1’st July 2000 when he bought it). Assume the shed was done on 1’st July 2020 when Greg handed over the Caravan to Josh. (Assume the value of Josh’s works was for $15,000, and the market value of the caravan was for $16,000) Discuss whether Josh needs to declare it as an ordinary income or not?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 32P

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