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D16 Morado co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › D16 Morado co

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • October 8, 2021 at 11:32 am #637241
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir in this question, in part b, I do not understand that how they have calculated Reduction in earning due to lower investment (9% x 84). How they have came with 84 fig?
    Also I do not understand that how they have calculated profit on sale of NCA as (84 x 15%). Again how they have came with 84 fig?

    October 8, 2021 at 2:30 pm #637257
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54787
    • ☆☆☆☆☆

    The question says that the same will result in the book value of the NCA’s reducing by 30%.

    30% x 280,000 = $84,000

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