Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone do this question please UUULIOL Sue and Tony Chan, a married couple, are selling various assets to fund their joint 50th birthday party

image text in transcribed

Can someone do this question please

UUULIOL Sue and Tony Chan, a married couple, are selling various assets to fund their joint 50th birthday party next month. For 2018/19, Sue and Tony's taxable income is 10,000 and 65,000 respectively. During 2018/19 Sue and Tony made the following disposals: Sue: 4 May 2018 12 July 2018 Vintage car purchased for 12,000 in January 1999 and sold for 31,900 Painting that was inherited by Sue in June 2012 on the death of her grandmother. The market value of the painting in June 2012 was 7,100 and Sue sold it at auction for 10,900 before auction fees of 10% of the sales proceeds were charged. Sculpture that cost 5,000 in January 2014 and was sold for 25,000. Sale of second hand DVDs online. The total cost was 2,000 and the proceeds received were 1,200. 13 July 2018 14 July 2018 Tony: 13 August 2018 Commercial office premises which cost 190,000 in May 2003 and was sold for 230,000. In May 2004 Tony redecorated the property costing 2,000 and installed air conditioning which cost 1,700. Antique furniture that was purchased in May 2002 for 7,200, and sold for 5,550. 2 March 2019 Tony has a capital loss brought forward of 900 from 2017/18. Required: (i) Calculate the capital gains tax payable by both Sue and Tony for 2018/19, making clear your treatment of each item. (17 marks) (ii) Calculate the total net after tax proceeds as a result of these sales in 2018/19 which are available for Sue and Tony to spend on their party. (8 marks) (Total - 25 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Interpreting And Analyzing Financial Statements

Authors: Karen P. Schoenebeck

3rd Edition

0130082163, 9780130082169

More Books

Students also viewed these Accounting questions

Question

12.3 Explain employment termination of various occupational groups.

Answered: 1 week ago

Question

Define outplacement and severance pay.

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago