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Calculate the amount of the capital tax on the asset


Problem: SFT operates in the tax jurisdiction of G-land where the currency is the G$. On 01 May 20X6, SFT purchased an asset for G$75,000 and incurred legal fees related to the purchase of G$7,000. During the asset's life, SFT incurred costs of G$9,000 for repairs and G$25,000 for enhancement costs. On 31 May 20X9 SFT sells the asset for G$135,000 incurring estate agent fees of G$5,000. G-land allows an annual exemption of G$10,000 and charges a capital tax rate of 10%. Calculate the amount of the capital tax on the asset. Do not include symbols, commas or letters in your response.

 

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Accounting Basics: Calculate the amount of the capital tax on the asset
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