Joe purchases a block of land in the western suburbs of Adelaide as an investment on 31 march 1988 for $50,000 incurring fees on purchase totaling $2,000. By 31 December 1988, he builds a house on the land costing $24,000. By 30 June 1990, he erects a large garage on the rear of the property costing $8,000. In May 2021, he decides to sell the investment property. On 1 June 2021 he enters in to contract to sell the property for $400,000 and receives payment on settlement on 31 July 2021, He incurs selling cost of $12,000 Calculate joe’s net capital gain for the financial year ending 30 June 2021 using both discounting and indexation methods if applicable. $152,000(discount method) and $236,224(indexation method) $152,000(discount method) and $272,448(indexation method) $76,000(discount method) and $272,448 (indexation method) $76,000(discount method) and $136,224(indexation method)
Joe purchases a block of land in the western suburbs of Adelaide as an investment on 31 march 1988 for $50,000 incurring fees on purchase totaling $2,000. By 31 December 1988, he builds a house on the land costing $24,000. By 30 June 1990, he erects a large garage on the rear of the property costing $8,000. In May 2021, he decides to sell the investment property. On 1 June 2021 he enters in to contract to sell the property for $400,000 and receives payment on settlement on 31 July 2021, He incurs selling cost of $12,000 Calculate joe’s net capital gain for the financial year ending 30 June 2021 using both discounting and indexation methods if applicable. $152,000(discount method) and $236,224(indexation method) $152,000(discount method) and $272,448(indexation method) $76,000(discount method) and $272,448 (indexation method) $76,000(discount method) and $136,224(indexation method)
Chapter3: Income Sources
Section: Chapter Questions
Problem 85P
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Question
Joe purchases a block of land in the western suburbs of Adelaide as an investment on 31 march 1988 for $50,000 incurring fees on purchase totaling $2,000. By 31 December 1988, he builds a house on the land costing $24,000. By 30 June 1990, he erects a large garage on the rear of the property costing $8,000. In May 2021, he decides to sell the investment property. On 1 June 2021 he enters in to contract to sell the property for $400,000 and receives payment on settlement on 31 July 2021, He incurs selling cost of $12,000
Calculate joe’s net capital gain for the financial year ending 30 June 2021 using both discounting and indexation methods if applicable.
$152,000(discount method) and $236,224(indexation method)
$152,000(discount method) and $272,448(indexation method)
$76,000(discount method) and $272,448 (indexation method)
$76,000(discount method) and $136,224(indexation method)
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT