Page 423 - F1 Integrated Workbook STUDENT 2018

Answers

Exxampple 8

An eentity bougght an asseet for $20,0000 on 01//02/X0. The asset waas sold for
$500,000 on 211/11/X9.
Indeexation alloowance caan be claimmed at 30%% from February 20X00 to
Novvember 20XX9.

Cappital gains are taxed at 30%.
What is the inndexationn allowancce the entity can claaim on dissposal of the
assset?
Solution

Thee indexation allowancce can be cclaimed onn the cost oof the asseet =
$200,000 × 30%% = $6,0000

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