Question

Which of the following is a CGT Event A1?

a) Sale of an inherited asset
b) Issue of shares by a company
c) Destruction of a factory used by a manufacturing company
d). Expiry of an option

Answer 1

The correct answer is d) Expiry of an option. CGT Event A1 refers to a Capital Gains Tax event in Australia that triggers a capital gain or loss for tax purposes. It specifically occurs when an option expires.

Step-by-step explanation:

The correct answer is d) Expiry of an option.

CGT Event A1 refers to a Capital Gains Tax event in Australia. It is a taxation event that triggers a capital gain or loss for tax purposes.

CGT Event A1 specifically occurs when an option expires. An option is a financial instrument that gives the holder the right to buy or sell an asset at a predetermined price within a specified time period. When the option expires, it is considered a CGT Event A1, and any capital gain or loss is calculated and subject to taxation.