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Could you please explain why in the calculation of FV adjustments they multiplied 12m by 3/4? I understand that the remaining useful life since the acquisition date is 4 years hence the denominator is 4 (correct me please if I am wrong) but why the numerator is 3? Shouldn’t we only take the depreciation for the year in which the acquisition has taken place (for example question 258 from BPP kit was calculated that way)? So then it would be 12m * 1/4 = 3m?
When did the acquisition occur? If it was three years ago then there will be three years worth of depreciation to account for.