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In the computation pro forma, under the Short lIfe Asset column, there is a BA/BC thing.
pls let me know if the following is correct:
1. ba/bc for short life assets will occur upon their disposal
2. if sales proceeds > wdv, then BC
3. if sales proceeds < wdv, then BAthe figure for wdv used is just before computation of WDA?
thanks in adv
Correct! It is probable of course that it would be a balancing allowance as the taxpayer would only have made this election knowing that not only did the asset have a short life but it also had a low residual value and therefore its eventual sale would indeed lead to a balancing allowance, thus ensuring that the taxpayer received all the capital allowances due on the asset within the lifetime of its ownership.
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