john Ltd is a car retailer. On 1 April 2020, Jack Ltd sold a car to kay on the following terms: The selling price of the car was £25,300. kay paid £12,650 (half of the cost) on 1 April 2020 and would pay the remaining £12,650 on 31 March 2022 (two years after the sale). john Ltd’s cost of capital is 10% per annum. What is the total amount which john Ltd should credit to profit or loss in respect of this transaction in the year ended 31 March 2021? A £23,000 B £23,105 C £20,909 D £24,150

john Ltd is a car retailer. On 1 April 2020, Jack Ltd sold a car to kay on the following terms: The selling price of the car was £25,300. kay paid £12,650 (half of the cost) on 1 April 2020 and would pay the remaining £12,650 on 31 March 2022 (two years after the sale). john Ltd’s cost of capital is 10% per annum. What is the total amount which john Ltd should credit to profit or loss in respect of this transaction in the year ended 31 March 2021? A £23,000 B £23,105 C £20,909 D £24,150

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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