All Question Need Calculation and Explanation with Harvard Referencing . QUESTION 1Over the last 12...

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All Question Need Calculation and Explanation with Harvard Referencing . QUESTION 1Over the last 12 months, Eric acquired the following assets: an antique vase (for $2,000), an antique chair (for $3,000), a painting (for $9,000), a home sound system (for $12,000), and shares in a listed company (for $5,000). Last week he sold these assets as follows: antique vase (for $3,000), antique chair (for $1,000), painting (for $1,000), sound system (for $11,000) and shares (for $20,000). Calculate his net capital gain or net capital loss for the year.Question 2 Brian is a bank executive. As part of his remuneration package, his employer provided him with a three-year loan of $1m at a special interest rate of 1% pa (payable in monthly instalments). The loan was provided on 1 April 2016. Brian used 40% of the borrowed funds for income-producing purposes and met all his obligations in relation to the interest payments. Calculate the taxable value of this fringe benefit for the 2016/17 FBT year. Would your answer be different if the interest was only payable at the end of the loan rather than in monthly instalments? What would happen if the bank released Brian from repaying the interest on the loan?Question 3 
	
Document Preview: All Question Need Calculation and Explanation with Harvard Referencing . QUESTION 1Over the last 12 months, Eric acquired the following assets: an antique vase (for $2,000), an antique chair (for $3,000), a painting (for $9,000), a home sound system (for $12,000), and shares in a listed company (for $5,000). Last week he sold these assets as follows: antique vase (for $3,000), antique chair (for $1,000), painting (for $1,000), sound system (for $11,000) and shares (for $20,000). Calculate his net capital gain or net capital loss for the year. Question 2 Brian is a bank executive. As part of his remuneration package, his employer provided him with a three-year loan of $1m at a special interest rate of 1% pa (payable in monthly instalments). The loan was provided on 1 April 2016. Brian used 40% of the borrowed funds for income-producing purposes and met all his obligations in relation to the interest payments. Calculate the taxable value of this fringe benefit for the 2016/17 FBT year. Would your answer be different if the interest was only payable at the end of the loan rather than in monthly instalments? What would happen if the bank released Brian from repaying the interest on the loan? Question 3 Jack (an architect) and his wife Jill (a housewife) borrowed money to purchase a rental property as joint tenants. They entered into a written agreement which provided that Jack is entitled to 10% of the profits from the property and Jill is entitled to 90% of the profits from the property. The agreement also provided that if the property generates a loss, Jack is entitled to 100% of the loss. Last year a loss of $10,000 arose. How is this loss allocated for tax purposes? If Jack and Jill decide to sell the property, how would they be required to account for any capital gain or capital loss? Question 4What principle was established in IRC v Duke of Westminster [1936] AC 1? How relevant is that principle today in Australia? XXXXXXXXXXWords with Harvard...

Robert · Accepted Answer

Solutions to Question - 1 
Eric has acquired the following assets: 
Antique Vase - $ 2000 
Antique Chair - $3000 
Painting -           $9000 
Home sound system- $12000 
Shares of a listed company - $ 5000 
And sold these assets, with regard to the capital gain first we have to see that the asset is 
qualifying as asset under capital gain, as mentioned the antique chair and vase is qualifies for 
capital gain as these collectables are acquired for more than $ 500 so not exempt from CGT. The 
home sound system as personal use asset also qualifies for CGT as the acquisition cost is more 
than $10,000 and buying the shares of a listed company also qualifies for CGT. Under set off 
rules capital gain or loss from collectables and personal use asset can be set off with their 
respective heads not from the other capital gain and losses. 
So from the collectables the net capital gain or loss is from antique vase= ($3000-$2000) = 
$1000 is the capital gain, from the antique chair = ($1000-$3000) = $2000 is the capital loss. So 
from the collectables the net capital loss will be $1000 capital loss which can’t be set off against 
any other capital gain and can be carried forward to the future year. From the house sound 
system the capital gain or loss is =($11000-$12000) = $ 1000 will be the net capital loss which is 
also can’t adjusted with any other capital gain or losses and can be carried forward to future 
years. From the shares of a listed company the capital gain or loss = ($20000-$5000) = $15000 
will be the capital gain. 
Solutions to Question-2 
As per the rules and regulations,

All Question Need Calculation and Explanation with Harvard Referencing . QUESTION 1 Over the last 12 months, Eric acquired the following assets: an antique vase (for $2,000), an antique chair (for...

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