- This topic has 1 reply, 2 voices, and was last updated 6 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Partial disposal of asset (Eg 9, page 81)
Dear Tutor,
In the subject example, suppose cost of 10hectares of land 26,000, ST sold 2hects for 16000. The ramining 8 hects valued at 34000. However, if ST incurred lets say 2000 as incidental sales cost, then how do we calculate the chargeable gain?
Is it going to be as follows:-
Since GROSS proceed from disposal is 16000,
Allowable cost = 26000 X (16000/ 16000+34000) = 8320.
Chargeable gain = 16000 – 8320 – 2000(i.e. incidental cost) = 5,680.
Or is it going to be something else?
yes you do a normal gains calculation deducting selling expenses from SP and then use the part disposal calculation to compute the allowable cost to then be deducted