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Hello
Kindly I would like to ask a question for the practice question 14 from chapter 6 of Trading Profit – Basis periods. In your answer for calculating the profit for tax period 2011/2012 you are using the actual period for 1/2/2012 to 05/04/2012 (equivalent of 2 months), however in your working you are multiplying with a factor of 1/18 and not 2/18. Could you please explain why is it that you used as a factor only 1 month and not 2 months ?
Thank you in advance for support.
Best regards,
HagopHi Hagop
Many thanks for your note and firstly my apologies that I have only now looked at your question. I must also thank you for pointing out a silly error in the answer!! It is of course 2 months and not 1 month in the opening tax year’s (11/12) basis period. I will arrange for the answer to be amended on the OT site accordingly and please update me if you find any other mistakes!!!!
Again my thanks for bringing this to my attention and good luck in your studies!
Kind Regards
Colin
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