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Hello,
Can you please explain how the figure 492,500 was gotten under the tax allowable depreciation working? Thank you.
I am sorry, but I do not have the BPP book. You will have to tell me which exam it is from.
The examiner has shown his workings in a strange way.
The tax written down value after 3 years is 800,000 – 200,000 – 150,000 – 112,500 = 337500.
In the year of sale we subtract the scrap proceeds (of 30,000) and the balance of 337500 – 30000 = 307500 is the balancing allowance.
(the 492500 is not really at all relevant 🙂 )
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