28 joe acquired shares in macquarie bank in january

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28. Joe acquired shares in Macquarie Bank in January 2020 for $50,000. He needed cash quickly to pay off his mortgage and sold the shares in June 2020 for $70,000. What amount must Joe include in his assessable income for the year ended 30 June 2020 as a net capital gain? A. $20,000 B. $10,000 C. $70,000 D. $35,000 The shares were purchased in January 2020 and held for less than 12 months therefore neither indexation nor discount percentage is relevant. Cost base = $50,000 Capital proceeds = $70,000 Capital gain = $20,000 (included in assessable income per s 102-5 ITAA 1997)
29. Old MacDonald entered into an agreement with his neighbour not to breed certain types of cattle for a period of 10 years. He received $7,500 from his neighbour for entering into the agreement in March 2020. The $7,500 is not part of Old Macdonald's assessable income for the year.
30. Amanda purchased a holiday house on 3 April 2015. The property is to be used for her family holidays throughout the year. Up to 30 June 2020 she has paid the following amounts in relation to the property: Purchase price $375,000 Stamp duty on purchase $2,800 Legal fees to transfer title $1,100 Interest paid on loan to purchase the property $7,000 Plumbing Repairs $700 Rates paid to the local council $800 What will be Amanda’s cost base of the holiday house for CGT purposes?
Chapter – Capital Allowances 1. Dwell Co Pty Ltd's low-value pool closing balance for the year ended 30 June 2019 was $2,500. During the 2019/2020 income year Dwell Co Pty Ltd acquired a depreciating asset for $800 (excluding GST). Its taxable use percentage is 80%. Also in the 2019/2020 income year, Dwell Co Pty Ltd chose to allocate to the low-value pool, a low value asset with an opening adjustable value at 1 July 2019 of $990. what is the closing pool balance for the 2019/2020 income year, rounded to the nearest whole dollar?
B. $1790 C. $1429 D. $990 E. $110 The decline in value of the low-value pools is $1,428.75 calculated as: $2,500 x 37.5%= $937.50 $800 x 80% x 18.75% = $120.00 $990 x 37.5% = $371.25 The closing pool balance is $2,500 + ($800 x 80%) + $990- $ 1,428.75 = $2,701.25 2. An asset commences to be used for a project in a remote location on 30 September 2015.The asset was initially expected to have an effective life of 20 years. The project was completed on 29 September 2019 and the asset was simply abandoned on 30 September 2019. what is the asset's effective life? A. 10 years B. 5 years C. 4 years D. 1 year In such a case the effective life is the period beginning at the time the asset is first used by the taxpayer for income-producing purposes, ending at the time the asset is likely to be scrapped. Once a taxpayer has scrapped or abandoned an asset there is a presumption it can no longer be used by anyone to produce income because it is either physically exhausted or obsolete. A taxpayer may also abandon an asset if it is too difficult or costly to remove it from its place of operation. if, at the time the taxpayer id estimating the

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