Pilot Paper- Trecor Co.(Question 4)

This topic has 2 replies, 2 voices, and was last updated 10 years ago by John Moffat.

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February 16, 2016 at 12:59 am #300629
Vineeth
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Could you please explain how the capital allowances were calculated for this question.
Inital investment for the machine- $250,000
Scrap Value- 5000
Annual tax rate- 30% one year in arrears
It can claim capital allowance on a 25% reducing balance basis.
Machine will last for 4 years.
February 16, 2016 at 2:07 am #300631
Vineeth
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I found the answer with the help of another question.. Thank you anways John
February 16, 2016 at 6:40 am #300640
John Moffat
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Our free lectures on investment appraisal with tax explain how to deal with it.
(Our lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well)
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