Due to some financial stress, Cindy, aged 45, sold some assets during May-June 2024. All the assets sold were held for Cindy’s personal use and enjoyment, except the shares in companies. The details of the asset sales are as follows: Shares Date of Purchase Cost of Purchase Date of SaleSale ProceedsMotor vehicle14 May 2016 $12,0001 May 2024$8,800Bracelet (jewellery)28 June 2011 $86014 May 2024$4,800Bookcase5 March 2022 $26012 June 2024$180Shares in BPH Ltd10 May 1997 $36,000 19 June 2024$97,000Shares in XYZ Ltd12 July 1985 $14,000 10 May 2024$125,000Which of the following statements is most correct in respect to disregarded capital gains and disregarded capital losses under the CGT regime in respect to Cindy?Question 6Answera.The following are disregarded: (i) motor vehicle (ii) bookcase (iii) BPH Ltd shares and (iv) XYZ Ltd shares.b.The following are disregarded: (i) motor vehicle (ii) bookcase and (iii) XYZ Ltd shares.c.The following are disregarded: (i) motor vehicle (ii) bracelet (iii) bookcase and (iv) XYZ Ltd shares.d.None of the gains and losses are disregarded because they all involved the sale of a CGT asset.

On 1 April 2017 Rosa purchased two motor vehicles costing $50 000 each.On 1 January 2019 she sold one of the motor vehicles for $35 500. The sale proceedswere received by cheque.Depreciation is charged at 20% per annum using the reducing balance method.A full year’s depreciation is charged in the year of purchase and none in the year ofdisposal.(d) Prepare the provision for depreciation – motor vehicles account for the yearended 31 March 2019. Balance the account on that date and bring the balancedown on 1 April 2019.

Context: Details of accumulated depreciation of property, plant and equipment are as follows.Assets Cost Rs. ‘000’ Accumulateddepreciation Rs. ‘000’Motor vehicleOffice equipmentLand and building(Land cost Rs. 5 000)2 0001 0009 7006006251 80012 700 3 0252. In accordance with inventory records, cost value of stock on 31.12.2021 is Rs. 450 000. However, thegoods taken by Gayathri for her private need have not been recorded.3. Telephone charge not paid up to 31.12.2021 is Rs. 30 000.4. Property, plant and equipment are depreciated on straight line method. The details useful life time andresidual value are given below.Grade - 12 (2023) – 2023 FWC - 7 - Accounting- IAssets Useful life time Residual valueMotor vehicleOffice equipmentBuilding20 years10 years18 years--- Details of accumulated depreciation of property, plant and equipment are as follows. Assets Cost Rs. ‘000’ Accumulated depreciation Rs. ‘000’ Motor vehicle Office equipment Land and building (Land cost Rs. 5 000) 2 000 1 000 9 700 600 625 1 800 12 700 3 025 2. In accordance with inventory records, cost value of stock on 31.12.2021 is Rs. 450 000. However, the goods taken by Gayathri for her private need have not been recorded. 3. Telephone charge not paid up to 31.12.2021 is Rs. 30 000. 4. Property, plant and equipment are depreciated on straight line method. The details useful life time and residual value are given below. Grade - 12 (2023) – 2023 FWC - 7 - Accounting - I Assets Useful life time Residual value Motor vehicle Office equipment Building 20 years 10 years 18 years - - - Profit or loss statement for the year ended 2021.12.31 2. Statement of financial position as at 2021.12.31

Jennings bought an asset before 1 October 2001. During current year of assessment, she sold the asset for R500 000. She did not keep an accurate record of the expenditure or the cost of the asset. The Market Value of the asset on 1 October 2001 was R600 000. YOU ARE REQUIRED to determine the base cost of the asset.a.The base cost is limited to the Proceeds of R500 000 because the Proceeds are less than the Market Value.b.R200 000, the base cost is 20% of the (Proceeds less cost incurred after 1 October 2001) plus expenditure incurred after 1 October 2001. This is also known as an anti-avoidance measure.c.The base cost is R600 000, the Market Value of the asset on 1 October 2001. Jennings can use the Market Value even if it creates a loss.d.The base cost is R100 000 which is the Market Value of the asset on 1 October 2001 less Proceeds of R500 000 as the sale of this asset cannot create a loss.

Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $164,000. The asset is expected to have a salvage value of $16,600 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be:Multiple Choice$48,276$35,424$88,560$32,184$147,600

Mary Limited acquired the identifiable assets and liabilities of Joan Limited for $530 000. The items acquired, stated at fair value, are: equipment $296 000; inventories $160 000; accounts receivable $104 000; patents $60 000; accounts payable $80 000. The difference on acquisition is: Group of answer choices gain on bargain purchase $170 000 goodwill of $10 000 goodwill of $170 000 gain on bargain purchase $10 000