Q2. Answer the following questions: (0.5 Mark each)

A - . A taxpayer dispose of an asset by gift with a Cost base of 50,000 SR. The market value of those assets at the time of disposal is 70,000 SR.

Required:

What is gain or loss on the asset disposed of and determine whether or not the gain taxable and the loss deductible?

B- . In 2015, a taxpayer purchased a piece of land for 100,000 SR and in 2020; he incurred expenses of 30,000 SR to improve the land. In 2020, he sold the land for 150,000 SR.

Required:

What is gain or loss on the asset disposed of and determine whether or not the gain taxable and the loss deductible?

C- . A taxpayer disposed a part of asset for 100,000 SR in cash. The taxpayer purchased that asset for 90,000 SR 5 years ago, but the market value of the complete assets was as follows:

Part disposed 100,000

Retained part 150,000

Total 250,000

Required:

Calculate the cost base of the disposed asset and the gain of the disposal.