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On 30th June 3 acres of land were sold by A ltd for 192000. A ltd had originally purchased 4 acres of land, the indexed cost of the 4 acres on 30 June 2014 was 196000. The market value of the unsold acre of land as at 30 June 2014 was 53000. During June 2014 A ltd spent 29400 clearing and leveling the 3 acres of land that were sold.
What is the total of the original indexed cost and enhancement expenditure that will be deducted to compute the gain on the disposal on 30 june 2014?
Are we supposed to use A/(A+B), but its wrong the answer is 183000 how?
183000 is correct if they are asking the allowable cost. What does the question ask? Allowable cost or gain?
What is the total of the original indexed cost and enhancement expenditure that will be deducted to compute the gain on the disposal on 30 june 2014??
@abdulazeez44 said:
183000 is correct if they are asking the allowable cost. What does the question ask? Allowable cost or gain?How it comes to 183000 ?
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