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If no claim was made – the receipt of the proceeds would be a part disposal in January 2019.
Good Day Sir,
Can you please tell me how to calculate (29524)
Thank you for your question – I can now see that the working for the allowable cost has not been printed – my apologies!
As the answer says – the proceeds received would be treated as a part disposal – therefore the calculation required to compute allowable cost would be the normal part disposal calculation (see study manual page 110) as follows:
Cost x Sale Proceeds / (Sale Proceeds + Value Remaining)
= 124,000 x 50,000 / (50,000 + 160,000)