Bravado 6/09

Hi Mike.
Tax Base of Mixted net assets was 166m,Book value was 162m and Fair value of Net assets was 176 ( 14 m relates to PPE remaining life of 7 year) Tax rate is 30% so D.T is 3m .

But at end of year excess dep is 2m but why BPP reduce D.T by 0.4m (3/7) ? and why ACCA website decrease D.T liability by 0.6m (2m *30%).

Difference in Tax base and Fair value was not solely due to access of PPE