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<p><strong>(a) $15,000</strong></p> <p><strong> (b)$20,000</strong><strong>(c) $30,000</strong></p> <p><strong> (d) $40,000</strong></p> <p><strong>(e) None of these.</strong></p>
the right answer is (b)
Capital Profit is being asked:
i.e. An increase in the value of a capital asset that gives it a higher worth than the purchase price.
(b)$20,000
b) you dont's need to worry with the book value !
I agree with Labib. Capital gain is $20000.
Answer B. Capital profit is20,000. Thanks Mr.Vridavan for the invitation to answer. :)
$ the correct is b 20,000
Here20000 is capital profit.
When Motor car purchased $80,000 then book value $48000 then capital Loss $32,000
Now book value $48,000 and sales value $100,000
So capital profit will be (100,000-80,000)= $20,000.
the answer is20000
B. is correct
