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Sir in this question, in part b, I do not understand that how they have calculated Reduction in earning due to lower investment (9% x 84). How they have came with 84 fig?
Also I do not understand that how they have calculated profit on sale of NCA as (84 x 15%). Again how they have came with 84 fig?
The question says that the same will result in the book value of the NCA’s reducing by 30%.
30% x 280,000 = $84,000