Colvin co. Sep/ Dec 2020 sample

This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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September 4, 2021 at 10:47 am #634252
surajsusheel
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Hi John,
The land and building is increasing by 30%, why arent we adding this to the operating cash flows to find the taxable profit since this is appreciation?
September 4, 2021 at 12:13 pm #634278
John Moffat
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The question says that it is tax exempt 🙂
September 4, 2021 at 3:27 pm #634293
surajsusheel
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if the question didnt say that, we would add it right? to find the taxable profits
September 4, 2021 at 3:53 pm #634309
John Moffat
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No, you would calculate the balancing charge or allowance in the final year by taking the difference between the sale proceeds and the tax written down value (as we did in Paper FM, was F9).
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