Question

A few years ago, Lance bought 7 acres of land at a cost of £28,000. He sold 3 acres of the land on 10 September this year at auction. The gross proceeds of sale were £30,000 and the auctioneer's commission was 5% of the proceeds which was deduced from the proceeds of sale. The remaining 4 acres of land were valued at £20,000 on the date of the auction. What was Lance's chargeable gain on sale of the three acres of land?

Name: a few years ago lance bought 7 acres of land at a cost of 28000 he sold 3 acres of the land on 10 september this year at auction the gross proceeds of sale were 30000 and the auctioneers commission wa
Uploaded: 2023-12-04T02:48:22-08:00
Duration: 1 min 8 s
Channel: Breanna Ollech
Description: a few years ago lance bought 7 acres of land at a cost of 28000 he sold 3 acres of the land on 10 september this year at auction the gross proceeds of sale were 30000 and the auctioneers commission wa

          A few years ago, Lance bought 7 acres of land at a cost of £28,000. He sold 3 acres of the land on 10 September this year at auction. The gross proceeds of sale were £30,000 and the auctioneer's commission was 5% of the proceeds which was deduced from the proceeds of sale. The remaining 4 acres of land were valued at £20,000 on the date of the auction.
What was Lance's chargeable gain on sale of the three acres of land?

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Precalculus Student Solutions Manual 5th

Margaret L. Lial, John Hornsby, David I.… 5th Edition

Chapter 1

Instant Answer

Solved by Expert Breanna Ollech

12/04/2023

Step 1

The auctioneer's commission is 5% of the gross proceeds of sale, which is £30,000. So, the commission is 5/100 * £30,000 = £1,500. Show more…

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A few years ago, Lance bought 7 acres of land at a cost of £28,000. He sold 3 acres of the land on 10 September this year at auction. The gross proceeds of sale were £30,000 and the auctioneer's commission was 5% of the proceeds which was deduced from the proceeds of sale. The remaining 4 acres of land were valued at £20,000 on the date of the auction. What was Lance's chargeable gain on sale of the three acres of land?