Jerome bought a factory in June 2004 for £680,000. In August 2020 wishing to move to a more convenient location, he sold the factory for £800,000. He moved into a rented factory until January 2021 when he purchased and moved to a new factory.   REQUIREMENT FOR PART C Assuming that all beneficial claims are made calculate the base cost of the new factory if it was purchased for (a) £750,000 (b) £600,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
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Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
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Jerome bought a factory in June 2004 for £680,000. In August 2020 wishing to move to a more convenient location, he sold the factory for £800,000. He moved into a rented factory until January 2021 when he purchased and moved to a new factory.

 

REQUIREMENT FOR PART C

Assuming that all beneficial claims are made calculate the base cost of the new factory if it was purchased for

(a) £750,000

(b) £600,000

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