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  • December 4, 2017 at 9:00 am #420101
    mysteryamosina
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    Hi! I have a question on the case described above. It is written that an investment is 81m and residual value is 10m. Why is tax allowable depreciation charged on a straight-line basis is calculated without taking the residual value into account?
    According to solution to this question, annual TAD is 81/3=27
    However, I expected it to be (81-10)/3=23,67
    Thank you in advance

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