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Ask the Tutor ACCA AFM

balancing allowance/charge in SLM of depreciation

Former userFormer user5y ago

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John MoffatJohn MoffatTutor5y ago#1
No. For tax purposes straight line depreciation should be calculated on the initial cost ignoring any expected sale proceeds. When the asset is sold or scrapped there is a balancing allowance or charge calculated in the normal way. (I can't actually remember the current examiner every having straight line depreciation anyway because it is always reducing balance in real life.
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