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Burung co

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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February 26, 2021 at 1:11 am #611723
Noah098
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sir when we are told in this question that realisable value of the asset is POST-TAX $4m, then why do use this figure for balancing allowance, shouldn’t we have used the PRE-TAX figure?
February 26, 2021 at 8:22 am #611759
John Moffat
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What tax would you be taking about and what tax rate would you assume to get a pre-tax figure???
The mention in the question of it being after any tax was unnecessary and irrelevant.
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