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depreciation has been deducted from PBT but why its not added back once after tax has been figured out ? question says tax allowable depreciation
Depreciation is only added back if it has been subtracted in the table of cash flows in order to calculate the tax.
In this question, it has not been subtracted as a cash flow – it is only subtracted in the workings for the tax payable. Since it has not been subtracted in the cash flows, it does not need adding back.
i can do either ways right? I mean instead of giving an working for tax ,directly taking its impact on cash flow?
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