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Sir,
I don’t know whether the initial capital investment of $150 million & $50 million (one year later) is included in the calculation? The same with the depreciation for these investment. Why we add back only the tax benefit from balancing allowance (NBV in year 6 – proceeds from sales)?
Many thanks.
I don’t know how to find the carrying amount of share based payment, which the answer says to be normally zero. Can you explain to me?
Much appreciated.
@johnmoffat said:
Your answer is correct, and I do apologise that there was an error in the test – it has now been corrected.(For the benefit of anyone else reading this, Tanhia has made a little typing error in her question – the budgeted labour hours were 144,000, not 114,000)
To John Moffat: Thank you very much!!!