- 14 Marks
AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax
Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.
Question
Alero Manufacturing Limited, Abeokuta, Ogun State, purchased a chargeable asset on hire purchase in year 2014. The deposit paid for the purchase was N800,000. The balance was to be paid in forty instalments of N75,000. The cash price of the asset was N2,400,000.
Required:
Calculate the capital gains, assuming the asset was sold as detailed below:
(i) For N4,200,000 after payment of thirty instalments. (7 Marks)
(ii) For N4,500,000 after payment of all the instalments. (7 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Capital gains tax, Disposal, Hire Purchase, instalment payments, Interest Element
- Level: Level 3
- Topic: Capital Gains Tax (CGT)
- Series: MAY 2018
Report an error