Question
On 5 March 2021, Faith disposed of the following assets. Item Purchase Price Sale Price Acquisition Date a. Family home $225,000 $620,000 July 2000 b.
On 5 March 2021, Faith disposed of the following assets.
| Item | Purchase Price | Sale Price | Acquisition Date |
| a. Family home | $225,000 | $620,000 | July 2000 |
| b. Family car | $20,000 | $6,000 | March 2001 |
| c. Grandfather clock in lounge room | $14,800 | $17,000 | June 2010 |
| d. A 125-year old Chinese vase | $6,500 | $8,000 | September 2002 |
| e. Shares in Woolworths Ltd | $6,850 | $9,650 | February 2000 |
| f. Home fridge, washing machine and dryer | $3,000 | $800 | January 2002 |
| g. Painting by a local artist (later famous) | $500 | $5,500 | September 2000 |
| h. Diamond bracelet | $2,750 | $750 | April 2006 |
Required:
- Calculate Faiths gross capital gain or capital loss in respect of the disposal of each asset. For those assets which are subject to the CGT discount method, show the undiscounted capital gain (ie the notional capital gain/loss).
- Calculate Faiths overall net capital gain or capital loss. Assume that Faith wishes to minimise her taxable income.
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
4th edition
78025524, 978-0078025525
