PTC - Chattles - restricting the gain
sarah_d
Registered Posts: 10 New contributor 🐸
i have done a past paper today, and either i am being really stupid or well, i just don't know
Non wasting chattles....Dec 08 paper
sold a painting for 60000 originally bought for £5000. spent £800 cleaning it and £4500 having it re framed
Restrict the gain
5/3(gross proceeds-6000)
5/3(60,000-6,000) = £90,000
How can the gain be more than the proceeds??
This is driving me crazy, i have check the fraction time and time again in my study notes, thinking surely it must be 3/5 giving £32400 but it deff says 5/3
Or is it the lower of gain or ristriction?
Arrrghhh driving me crazy!!
Non wasting chattles....Dec 08 paper
sold a painting for 60000 originally bought for £5000. spent £800 cleaning it and £4500 having it re framed
Restrict the gain
5/3(gross proceeds-6000)
5/3(60,000-6,000) = £90,000
How can the gain be more than the proceeds??
This is driving me crazy, i have check the fraction time and time again in my study notes, thinking surely it must be 3/5 giving £32400 but it deff says 5/3
Or is it the lower of gain or ristriction?
Arrrghhh driving me crazy!!
0
Comments
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If 5/3 x (Proceeds - 6000) leads to a higher gain, use the original gain. Only use this formula, if it will reduce the gain.0
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thank you, i thought it might be one of those 'the lower of' things, but no where in my study notes does it say that!!!0
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Answer is £49,700 which is the lower of the 20
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