What is the difference between two transaction

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Question - Regarding making a report of CGT (capital gain tax), the question was one man purchase a factory from someone.

After the purchase, he replaced some of the walls due to white ants ($46,000) and then, later, the outside of the factory are repainted because the paint is peeling. ($38,000).

Why the cost 46, 000 dollars is in Capital expense to increase the value, while the cost 38,000 is in Non-capital ownership cost?

What is the difference between two transaction?

Reference no: EM132634126

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