Page 54 - F1 Integrated Workbook STUDENT 2018
P. 54
Chaptter 2
Exxampple 8
An entity bougght an asset for $20,000 on 01//02/X0. The asset waas sold for
$500,000 on 211/11/X9.
Indeexation alloowance caan be claimmed at 30%% from Febbruary 20X00 to
Novvember 20X9.
Cappital gains are taxed at 30%.
What is the inndexationn allowancce the entiity can claaim on dissposal of tthe
assset?
Solution
Thee indexation allowancce can be cclaimed onn the cost oof the asseet =
$200,000 × 30%% = $6,0000
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