Hi John. In b i, why tax allowable depreciation is not deducted in pbit of 1230k? What I did is,
Pbit 1230
-TAD 1206
Pbt 24
-Tax 4. 8
PAT 19.2
+TAD 1206
CF 1225.2
- NCA re invest 1010
FCF 215
Is this correct?
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Nente co June 2012
8y ago#1No it is not correct (the examiners answer is correct).
The question says that in arriving at the profit after tax that have already deducted TAD, and so you do not want to subtract it again!
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