Business Law

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1
BUSINESS LAW
Table of Contents
Question 1......................................................................................................................2
Question 2......................................................................................................................3
Question 3......................................................................................................................5
References......................................................................................................................7
References......................................................................................................................8

2
BUSINESS LAW
Question 1
Part 1
The issue is to ascertain the capital gain of Helen by selling her antique painting.
The antique painting is a collectible item and thus shall be treated as a CG according section
108-10(2) of ITAA97. A CG Asset is formed when a CGT event takes place as mentioned
under 102.2 of ITAA97. The asset is acquired as soon as the TP derives the ownership as per
section 109-5(1).
Barbara acquired the antique painting from her father which was purchased on 20th
September 1985, when CGT was not prevalent. The CB will be the price with which the
product is bought, which is $4000 here. While, the capital proceed shall be selling price,
which is $12000 here. Therefore, the CG shall be capital proceed minus CB.
Part 2
The issue is to ascertain the capital gain of Helen by selling her historical structure
The historical structure is a collectible item and thus shall be treated as a CG
according section 108-10(2) of ITAA97. A CG Asset is formed when a CGT event takes
place as mentioned under 102.2 of ITAA97. The asset is acquired as soon as the TP derives
the ownership as per section 109-5(1).
Barbara acquired the historical structure which was purchased on December 1993,
when CGT was prevalent. The CB will be the price with which the product is bought, which
is $5500 here. While, the capital proceed shall be selling price, which is $6000 here.
Therefore, the CG shall be capital proceed minus CB.
Part 3
The issue is to ascertain the capital gain of Helen by selling her antique jewellery