- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi john,
I’m confused regarding the TAD calculation of the forth year of burung co june 14 question. Why is it $(0.5)?
Can you please help me with the calculation of TAD for this question?In the year of sale, there is a balancing allowance or balancing charge of the difference between the sale proceeds and the tax written down value.
The sale proceeds are 4M, the tax written down value is 16M – (8 + 2 + 1.5) = 4.5M.
Therefore there is a balancing allowance of 4.5M – 4M = 0.5M
This is a standard rule and is revision of Paper F9. Do watch my free Paper F9 lectures on investment appraisal with tax, where I go through the tax rules in full.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.