Please Correct solution with Explanation and do not Give Image format 2. Mr. Benoy owns an industrial undertaking which is situated in the urban area of a city. Heshifted the industrial undertakings to rural area as per government order. When shifted he had tosell the following assets of the concern:Plant & Machinery2011Land & Buildings Furniture201120131,00,0001-1-2019ParticularsYear of PurchaseSale value15,00,000Date of sale1-1-2019WDV5,00,0003,00,000Value of new assets purchased6,50,0008,50,000Date of purchase13-3-201913-3-2019Calculate the income from Capital gains for the previous year 2018-19.10,00,0001-1-201930,00070,00013-3-2019

In line with the guidance provided on Section 54G of Income Tax Act 1961, If any any person…

Particulars Year of Purchase Sale value Date of sale WDV 5,00,000 Value of new assets purchased 6,50,000 Date of purchase 13-3-2019 Calculate the income from Capital gains for the previous year 2018-19. Plant & Machinery Land & Buildings 2011 2011 15,00,000 1-1-2019 10,00,000 1-1-2019 3,00,000 8,50,000 13-3-2019

Particulars Year of Purchase Sale value Date of sale WDV 5,00,000 Value of new assets purchased 6,50,000 Date of purchase 13-3-2019 Calculate the income from Capital gains for the previous year 2018-19. Plant & Machinery Land & Buildings 2011 2011 15,00,000 1-1-2019 10,00,000 1-1-2019 3,00,000 8,50,000 13-3-2019

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter17: Property Transactions: §1231 And Recapture Provisions

Section: Chapter Questions

Problem 40P

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On July 1, 2020, Martinez Ltd., a publicly listed company, acquired assets from Marigold Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,620 Storage warehouse (building #2) 209,860 Machinery (in building #1) 75,000 Machinery (in building #2) 45,000 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment.In exchange for the acquisition of these assets, Martinez issued 145,530 common shares. Martinez’s shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Martinez’s shares on the Toronto Stock Exchange, 800 shares were sold for $5 per share. At the time of acquisition, both buildings were considered…
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