L Ltd is a trading company which prepares accounts to 31 march each year .In it,s statement of profit and loss for the year to 31 march 2015,it has included a deduction of $3,200 in respect of the annual leasing cost for a car. The car has a recommended list price of $16,000 and Co2 emissions of 140g/km.
What is the allowable expense in respect of the leasing cost for the accounting period ended 31 march 2015 ?
A)$2,720
B)$480
C)$3360
D)$3200
The right answer is A but i don,t know how.
A little bit explanation is appreciated.
Ask the Tutor ACCA TX-UK
Computing taxable total profits
See Chapter 4 OT notes section 2.2 note (i) - disallow 15% of hire charge for cars with emissions exceeding 130 g/km
3,200 x 85% =
@Taxtutor said: See Chapter 4 OT notes section 2.2 note (i) - disallow 15% of hire charge for cars with emissions exceeding 130 g/km 3,200 x 85% =Thanks Sir! All clear
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