- 10 Marks
PT – Nov 2024 – L2 – Q3b – Capital Gains Tax and Asset Realization
Tax computation on asset realization and understanding taxable capital assets.
Question
b) Kwamoso LTD sold the following assets to Mr. Badu on 18 May, 2023 for GH¢450,000 to settle a tax liability. Kwamoso LTD is not listed on the Ghana Stock Exchange.
Below are details of the assets:
| Name of Asset | Cost (GH¢) | Net Book Value (GH¢) | Market Value (18 May 2023) (GH¢) | Market Value (31 Dec 2023) (GH¢) |
|---|---|---|---|---|
| Truck vehicle | 750,000 | 480,000 | 320,000 | 350,000 |
| Generator | 60,000 | 29,400 | 8,400 | 8,000 |
| Laptops | 48,000 | 17,200 | 8,000 | 7,200 |
Required:
i) Compute the consideration received in respect of each asset realised.
ii) What constitutes capital assets in the context of capital gains tax in Ghana?
iii) Under what circumstance would there be a loss in the realization of a liability?
Find Related Questions by Tags, levels, etc.
- Tags: Capital Gains, Market Value, Tax computation, Tax Liability, Taxable Assets
- Level: Level 2
- Topic: Taxation of Capital Gains
- Series: Nov 2024
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