Ronny is your client and has come to you to prepare his tax return. During the...
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Ronny is your client and has come to you to prepare his tax return. During the 2018-19 financial year, Ronny has disposed of the following assets: (a) Ronny purchased a motor vehicle for personal use in May 2017 from an auction warehouse for $25,000. Ronny has spent $5,000 on improvements to the vehicle. In June 2019 Ronny sells the vehicle for $45,000. (b) Ronny purchased a vacant block of land in May 1991 for $300,000. In April 1998 Ronny subdivides the vacant block of land into two equal portions, both portions are valued at $200,000 each. In May 2019 Ronny sells one of the vacant blocks of land for $400,000 (c) Ronny acquired ANZ shares on 15 December 2018 for $25,000. He sold those shares on 2 May 2019 for $40,000. Calculate Ronny's Capital Gain, subject to Tax for the year ending 30 June 2019. Provide justification for your calculations using legislation and case law. Ronny is your client and has come to you to prepare his tax return. During the 2018-19 financial year, Ronny has disposed of the following assets: (a) Ronny purchased a motor vehicle for personal use in May 2017 from an auction warehouse for $25,000. Ronny has spent $5,000 on improvements to the vehicle. In June 2019 Ronny sells the vehicle for $45,000. (b) Ronny purchased a vacant block of land in May 1991 for $300,000. In April 1998 Ronny subdivides the vacant block of land into two equal portions, both portions are valued at $200,000 each. In May 2019 Ronny sells one of the vacant blocks of land for $400,000 (c) Ronny acquired ANZ shares on 15 December 2018 for $25,000. He sold those shares on 2 May 2019 for $40,000. Calculate Ronny's Capital Gain, subject to Tax for the year ending 30 June 2019. Provide justification for your calculations using legislation and case law.
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Capital gain on the Sale of Car is exempt from Tax Cost ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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