In case when we have DP more tha 6000 and Cost less than 6000.
We have (Gross DP - 6000)x 5/3
What does gross DP means?
Does it means Disposal proceed plus cost of disposal or selling?
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On 6 October 2021 Jorge sold a painting for £6,400. The painting had been purchased on 18 May 2006 for £2,200. Jorge incurred selling fees of £350 on the disposal.
Here we are taking
Gross DP as 6400 and 6400-6000 x 5/3
Should we take Gross DP as 6400+350=6750 as we will add back selling expense as it is gross dp?
Please help me with this confusion.
gross disposal proceeds are what they would have received before any expense of sale
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