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Dear Sir,
Copyright purchased on 30/04/2001 and sold on 30/04/2017 so the period of ownership is 16 years. However in answers provided they used 14 years ? Kindly clarify why they use 14 years instead of 16 or its a mistake in the answer provided.
I have not looked at question but I assume it was a 30 year life when acquired – but look at the example in the OT notes for comparison, because I think you need to look carefully at the calculation you are seeing as it is presumably working directly the allowable cost figure to now include in the gains calculation rather than the amount by which the cost should be reduced!
@nelvin said:
Dear Sir,Copyright purchased on 30/04/2001 and sold on 30/04/2017 so the period of ownership is 16 years. However in answers provided they used 14 years ? Kindly clarify why they use 14 years instead of 16 or its a mistake in the answer provided.
I had a look at the question too but the Tutor is right. If you just used the normal formula : cost – (P/L * (Cost-Scrap)) , you would get the name answer. They used a different method to get the answer. It’s not really about the method but the outcome.
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