QUESTION 2 Now that the COVID restrictions have been lifted and people can travel overseas, Pracila wishes to travel to India to visit her family and friends. However, the airfare has increased dramatically and to fund the cost of the trip, Pracila has to dispose of some of her assets. The following assets were disposed of by her in the year ended 30 June 2022 . 1. She owned an investment property in Byron Bay. Because of the popularity the property was always rented out. Given the popularity of the area prices had increased dramatically so it was a good time to sell. She inherited the property from her late uncle on 15 May 2010 . The market value was $359,000 on that date. The legal fees and stamp duty she had to pay on the transfer were $48,000. The council rates, insurance and the interest paid on the loan was $37,000 per annum, which she claimed as a tax deduction each year. She signed the contract to sell the property on 15 June 2022, but settlement is not until 15 September 2022. The contract price was $680,000. The agent charges a selling fee of 2.2% of the proceeds. 2. He also sold some shares that he owned in ANZ bank. The shares cost his $12,500 and were bought on 21 September 1990 . They were sold for $18,500 on 4 July 2021 . 3. He also dabbled in cryptocurrency and bought .0953 of a bitcoin for $42,000 on 6 June 2021. He converted it to Ethereum another cryptocurrency on 15 May 2022. The market value of the Ethereum was $38,000 on 15 May 2022 . In addition to the above sales Pracila also received the following amounts during the year. 1. She has invested $15,000 with an investment company. The company has under paid her the amount of interest for the last 5 years. The company now compensated her with an additional payment of $3,200 being extra interest owed 2. She worked part time in her uncle's restaurant and in addition to the wages, she also received the following: a. An amount of $500 to help fund her trip to India. She mentioned to a customer that she was going to visit her family after 2 years. b. Tips in cash of $5 per week. She works 20 weeks in the restaurant. She wants to know if the above two transaction would be included in her assessable income. REQUIRED: 1. Calculate the net capital gain or capital loss for Pracila for the year ended 30 June 2022 on the disposal of assets 1,2 and 3. In your answer you must show how you have calculated each individual net capital gain or loss for each asset and the overall net capital gain or loss. 2. Advise Pracila if the two transactions above where she received money would be assessable income to her. (6+3+3+6=18marks) QUESTION 2 Now that the COVID restrictions have been lifted and people can travel overseas, Pracila wishes to travel to India to visit her family and friends. However, the airfare has increased dramatically and to fund the cost of the trip, Pracila has to dispose of some of her assets. The following assets were disposed of by her in the year ended 30 June 2022 . 1. She owned an investment property in Byron Bay. Because of the popularity the property was always rented out. Given the popularity of the area prices had increased dramatically so it was a good time to sell. She inherited the property from her late uncle on 15 May 2010 . The market value was $359,000 on that date. The legal fees and stamp duty she had to pay on the transfer were $48,000. The council rates, insurance and the interest paid on the loan was $37,000 per annum, which she claimed as a tax deduction each year. She signed the contract to sell the property on 15 June 2022, but settlement is not until 15 September 2022. The contract price was $680,000. The agent charges a selling fee of 2.2% of the proceeds. 2. He also sold some shares that he owned in ANZ bank. The shares cost his $12,500 and were bought on 21 September 1990 . They were sold for $18,500 on 4 July 2021 . 3. He also dabbled in cryptocurrency and bought .0953 of a bitcoin for $42,000 on 6 June 2021. He converted it to Ethereum another cryptocurrency on 15 May 2022. The market value of the Ethereum was $38,000 on 15 May 2022 . In addition to the above sales Pracila also received the following amounts during the year. 1. She has invested $15,000 with an investment company. The company has under paid her the amount of interest for the last 5 years. The company now compensated her with an additional payment of $3,200 being extra interest owed 2. She worked part time in her uncle's restaurant and in addition to the wages, she also received the following: a. An amount of $500 to help fund her trip to India. She mentioned to a customer that she was going to visit her family after 2 years. b. Tips in cash of $5 per week. She works 20 weeks in the restaurant. She wants to know if the above two transaction would be included in her assessable income. REQUIRED: 1. Calculate the net capital gain or capital loss for Pracila for the year ended 30 June 2022 on the disposal of assets 1,2 and 3. In your answer you must show how you have calculated each individual net capital gain or loss for each asset and the overall net capital gain or loss. 2. Advise Pracila if the two transactions above where she received money would be assessable income to her. (6+3+3+6=18marks)
