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Question asks to find the tax allowable depreciation on a straight line basis, In the revision kit they have deducted the residual value to find the annual tax allowable depreciation.
I want to know whether we should deduct the residual value from the initial cost in straight line method to find the annual tax allowable depreciation or not.
On the rare occasions that questions have straight line depreciation (usually it is reducing balance) the examiner gives full marks whether the residual value is subtracted from the cost, or whether the depreciation is calculated just on the cost (and then there will be a balancing charge in the final year). Obviously the final answer is different but it would still get full makes.