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Hi,
In the answer to chapter 8, example 5 the machine is used for 3 years and there are 3 years of capital allowances.
However in the answer to chapter 9, example 3 the machine is used for 4 years but there are 5 years of capital allowances. Why is this?Chapter 9, Example 3, the machine is used for 4 years but receives 5 years of capital allowances. This is because the machine was bought on the last day of the current financial year.
As a result, the first capital allowance is calculated immediately (at the end of the current financial year), and then allowances are received for the 4 years while the machine is in use, totalling 5 years of capital allowances.
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