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PTAX HELP :(

JoshhSwFcJoshhSwFc Registered Posts: 9
edited July 2016 in AAT Level 4 (Level 8 in Scotland)
Joyce bought an asset in April 2002 for £105,000 and sold it in November 2015 for £148,600. Joyce paid auctioneer's commission of 7.5% when she bought the asset and auctioneer's fees of 10% on the sale value of the asset.

What is the gain arising from the disposal of this asset?

the answer is £20,865.. how is it calculated?





It may be really simple but my heads fried at the minute.

Cheers

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
    Proceeds = 148,600
    Less Auctioneers fees = 148,600 x 10% = 14, 860
    Net proceeds = 133,740

    Cost= 105,000
    Add commission 7.5% x 105,000 = 7,875
    Total cost = 112,875

    Gain = 133,740 - 112,875 = 20,865
  • JoshhSwFcJoshhSwFc Registered Posts: 9
    ahh thanks so much, i was getting confused on which fees to add and take off!
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