With regard to Question 1, answer provided by ACCA working 5, under the computation of post acquisition reserves of Mixed, may I know how the “deferred tax movement” of $0.6m calculated?
Is it because of 30% of the increase of $2m of depreciation? @@ I’m confused
Hi, yes, it’s the deferred tax on the excess depreciation. If we’re going to account for the additional depreciation calculated on the increase in the fair value of the PPE ((8 + 6)/7), then we should also amend the deferred tax calculation