Person tax question
Options
Lee
Registered Posts: 29 Regular contributor ⭐
Hi guys can someone please help me with how question 7.5 (b) has been worked out to get answer £5200 - in Osborne workbook page 28.
My working ;
10/(10+15)*12= £4800.
Thanks for yr help
Lee
My working ;
10/(10+15)*12= £4800.
Thanks for yr help
Lee
0
Comments
-
-
-
A quarter acre piece of land was sold for £10,000. It had been bought as part of the two-acre plot for £12000. The remaining land was valued at £15000 at the time of the sale.
The gain on the land is:
Cost of land = 12,000
Proportion of land sold = 10, 000 / (10, 000 + 15, 000) = 0.4
Therefore proportion of cost deductible against gain = 12, 000 x 0.4 = 4, 800
Capital gain = 10, 000 - 4,800 = 5, 200
I've taken a look at your answer and you have only calculated cost. The question asked for gain, i.e. sale proceeds - cost.0 -
Oops, thank you so much, you are right, just these little mistakes will cost me good marks.
lee0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 262 NEW! Qualifications 2022
- 144 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 44 AAT Level 3 Diploma in Accounting
- 65 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 268 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership