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Question
A building purchased for Rs. 1,50,000 was subsequently sold for Rs. 1,75,000; difference Rs. 25,000 will be _______________.
A building purchased for Rs. 1,50,000 was subsequently sold for Rs. 1,75,000; difference Rs. 25,000 will be _______________.
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Solution
The correct option is A Capital profit
Revenue profits are what your company makes by going about its business. It doesn't matter whether the business is selling diapers, mowing lawns, selling diesel fuel or running a nursing home. The profits you earn from your operations are revenue profitsA capital gain refers to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price.
Revenue profits are what your company makes by going about its business. It doesn't matter whether the business is selling diapers, mowing lawns, selling diesel fuel or running a nursing home. The profits you earn from your operations are revenue profits
A capital gain refers to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price.
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