Question

Stephanie, an Australian resident up until 29 June 2022, became a foreign resident on 30 June 2022 (Year 9) and has provided you with the following information: • Her Perth residential investment property was purchased for $200,000 in Year 1 (post-September 1999). It had a market value of $550,000 as at 30 June 2022. • Her antique car was acquired for $80,000 in Year 6. As at 30 June 2022, it had a market value of $85,000. • Her London (United Kingdom) residential investment property was purchased for $175,000 on 12 April in Year 8. It had a market value of $190,000 as at 30 June 2022. • She made a capital gain of $10,000 from selling some shares in a listed company in January 2022. The shares were acquired in November 2021. Assume that Stephanie has not made any elections. Calculate the minimum net capital gain or capital loss for Stephanie for the year ended 30 June 2022. Show all workings. Provide the relevant section references for any exclusions.

          Stephanie, an Australian resident up until 29 June 2022, became a foreign resident on 30 June 2022 (Year 9) and has provided you with the following information:

• Her Perth residential investment property was purchased for $200,000 in Year 1 (post-September 1999). It had a market value of $550,000 as at 30 June 2022.

• Her antique car was acquired for $80,000 in Year 6. As at 30 June 2022, it had a market value of $85,000.

• Her London (United Kingdom) residential investment property was purchased for $175,000 on 12 April in Year 8. It had a market value of $190,000 as at 30 June 2022.

• She made a capital gain of $10,000 from selling some shares in a listed company in January 2022. The shares were acquired in November 2021.

Assume that Stephanie has not made any elections.

Calculate the minimum net capital gain or capital loss for Stephanie for the year ended 30 June 2022.

Show all workings. Provide the relevant section references for any exclusions.

Show more…

Added by Daniel V.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

08/08/2023

Step 1

- Perth residential investment property: - Capital gain = Market value as at 30 June 2022 - Purchase price - Capital gain = $550,000 - $200,000 - Capital gain = $350,000 - Antique car: - Capital gain = Market value as at 30 June 2022 - Purchase price - Show more…

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Stephanie, an Australian resident up until 29 June 2022, became a foreign resident on 30 June 2022 (Year 9) and has provided you with the following information: • Her Perth residential investment property was purchased for $200,000 in Year 1 (post-September 1999). It had a market value of $550,000 as at 30 June 2022. • Her antique car was acquired for $80,000 in Year 6. As at 30 June 2022, it had a market value of $85,000. • Her London (United Kingdom) residential investment property was purchased for $175,000 on 12 April in Year 8. It had a market value of $190,000 as at 30 June 2022. • She made a capital gain of $10,000 from selling some shares in a listed company in January 2022. The shares were acquired in November 2021. Assume that Stephanie has not made any elections. Calculate the minimum net capital gain or capital loss for Stephanie for the year ended 30 June 2022. Show all workings. Provide the relevant section references for any exclusions.

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Transcript

00:01 We need to compute henningen manufactured basic and basic and diluted eps that is earning per share.

00:13 So far with this for this we need to consider the various events and during the year number one.

00:19 We need to calculate the weighted average number weighted average number of common share outstanding for basic eps.

00:36 Basic eps that is earning per share.

00:40 So for this ending common share, we need to calculate the beginning common shares that is we can say which is given 18 lakh plus shares on february 28, which is 60 ,000 minus shares repurchased on july 1, which is 6000.

01:02 So we got it here 18 lakh 54 thousand.

01:12 So this is our weighted average number of common shares at basic eps second.

01:17 We need to calculate the weighted average number of common share outstanding for diluted eps.

01:23 This is for basic eps.

01:25 Now the same for diluted eps that is earning per share.

01:32 So how we can calculate in this we need to convert the bonds on in the shares.

01:37 So ending common shares for this is beginning common shares, which are 18 lakh plus the shares sold on february 28, which is 60 ,000 minus share repurchased on july 1, which is 6000 plus convertible bonds issued on september 1, which is 40 ,000 plus additional shares to be issued to mr.

02:10 Hannigan, which is 60 ,000.

02:12 So here are total shares or amount 19 lakh 54 thousand...

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