Jerry purchased a private yacht on 4 June 1986 for $9500 which he used on holidays and at weekends to do some fishing. The fish caught were eaten by Jerry and his family. He used the yacht until 20 January of the current income year when he sold it for $18 000. Jerry’s capital gain/(loss) on the disposal of the yacht was:

Select one:

1. $2496 gain.

2. $500 loss.

3. $8500 gain.

4. Nil.

5. $4250 gain.

Answer rating: 100% (QA)

Gain refers to increase in net profit due to s... View the full answer