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Hello Sir
For chapter 20..
Ex.1 on part disposalWill it be wrong if for the calculation of £8,320 I use the base cost rule instead of the part disposal formula ?
Initial cost: 10 hectares = £26,000
=/=
2 hectares = £16,000
8 hectares = £34,000
———————————–
10 hectares = £ 50,000 (m.value)
==================B.cost for 2 hectares
16/50 × 26,000 = £8,320 (part disposal formula)Idea is the same.. same thing
Forgive me but I’m not sure here what you are saying is “your” calculation of the allowable cost – which must of course be £8,320 as per part disposal rule = 16/50(16 + 34) x 26,000.
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