CIMAPRA19-F01-1 Exam - Topic 1 Question 121 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 121
Topic #: 1

An entity bought a capital item for $110,000 on 1 March 20X4 incurring legal fees at the date of purchase of $2,500.

On 1 May 20X4 additional costs classified as capital expenditure by the tax rules of the country of $25,000 were incurred in respect of the asset. On 1 June 20X4 repairs not classified as capital expenditure were incurred at a cost of $15,000.

The asset was sold for $250,000 on 30 November 20X8 and costs to sell were incurred of $4,300.

Calculate the chargeable gain on the disposal.

Give your answer to the nearest $.

A$108200

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Suggested Answer: A

by Izetta at Jan 27, 2026, 08:33 PM

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Aleisha

5 days ago

I think we practiced a similar question where we had to determine the chargeable gain, but I can't recall if we included the selling costs in the final calculation.

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Haley

10 days ago

I remember we discussed how to calculate the initial cost of the asset, including legal fees, but I'm not sure if I should include the repairs in the calculation.

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Rana

15 days ago

The timing of the different costs is going to be important here. I'll need to make sure I'm applying the right treatment for each item in the correct accounting period.

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Cathern

20 days ago

This is a good test of my understanding of capital gains. I'm confident I can work through this step-by-step and get the right answer.

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Dick

26 days ago

Okay, I think I've got a plan. I'll calculate the total cost basis, including the purchase price, legal fees, and additional capital expenditures. Then I'll subtract that from the sale price and deduct the selling costs to get the chargeable gain.

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Ahmed

1 month ago

Hmm, I'm a bit unsure about how to handle the different types of expenditures and when they occurred. I'll need to review the rules on capital vs. revenue expenditures.

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Latanya

1 month ago

This looks like a straightforward capital gains calculation, but I'll need to be careful to account for all the different costs and dates.

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