Question
Miguel owns an antique vase which is about 200 years old. He paid the market value of $100,000 to acquire the vase 5 years ago.
Miguel owns an antique vase which is about 200 years old. He paid the market value of $100,000 to acquire the vase 5 years ago.
On the night of 12 November 2018, there was a fire on Miguel's premises and the vase was destroyed along with other property.
Miguel's insurance company paid him $75,000 on 6 July 2019, under his insurance policy.
Which of the following statements isTRUE?
Select one:
Miguel has incurred a capital loss of $100,000 in the 2018/19 financial year, and a capital gain of $75,000 in the 2019/20.
None of these
Miguel will incur a capital loss of $25,000 in the 2019/20.
Miguel will incur a capital loss of $25,000 in the 2018/19 financial year.
Miguel's insurance company has incurred a capital loss of $75,000 in the 2019/20 year.
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