- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Dear sir
year 4 1856, realisable value 1500. Answer gives 464, i calculated 1856 – 1500 and 25% of 356 = 107
Please clarify
It is because of note 9 in the question, which does not say that it is being sold – you are told the value as a continuing operation (i.e. the value of all later flows).
Therefore the answer has continued to calculate WDA for the 4th year i.e. 25% x 1856.
However, the note could be read in different ways and you would still get the marks if you had calculated the balancing charge instead.
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘BPP Mock 2 Q3 capital allowances’ is closed to new replies.