Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maria is an investor and over the years has acquired and disposed of a number of assets. She has kept records of all these transactions.

Maria is an investor and over the years has acquired and disposed of a number of assets. She has kept records of all these transactions. During the year ended 30 June 2020, Maria disposed of several assets. As a result of these disposals, she made a number of capital gains and losses:

Profit on sale of trading stock $15000

Loss on Disposal of motor vehicle $(5000)

Gain on Disposal of vacant block of land (acquired 1/9/19) $17000

Gain on sale of shares $4525

Loss on sale of shares $(2630)

Loss on Disposal of the caravan (cost $25000) $(5000)

Loss on Disposal of the antique watch (cost $4000) $(560)

Gain on Disposal of the investment property (acquired 24/12/2004) $162000

Capital losses carried forward from previous years:

Loss on Disposal of painting $1200

Loss on Disposal of Shares $12000

All assets, other than the land, had been owned by Maria for more than 12 months and had been acquired since December 1999.

Required:

Calculate the net capital gain that Maria should include in her tax return for the year ended 30 June 2020 and any losses that can be carried forward to future years.

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

Auditing Theory And Its Application

Authors: Hanson Arthur Warren, Arthur W. Hanson

1st Edition

1406753351, 978-1406753356

More Books

Students also viewed these Accounting questions

Question

Explain how emotion is a physiological experience.

Answered: 1 week ago

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago