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Q: Investment Project Review – June 2009 (A) unclaimed allowance calculation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Q: Investment Project Review – June 2009 (A) unclaimed allowance calculation

  • This topic has 3 replies, 2 voices, and was last updated 3 weeks ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 22, 2021 at 11:04 am #607531
    wanyo
    • Topics: 1
    • Replies: 4
    • ☆

    Hi sir, for the tax saving on unclaimed allowance, shouldnt there be no WDA claimed on the year of disposal. Hence we shouldnt be using the unclaimed allowance of 12.27m to calculate tax savings.

    Instead, we use
    25.7 – 7.0 =18.7 (bal allowance)
    tax benefit: 18.7 x 30%= 5.61

    but the answer given is (12.27 x 30%= 3.68).
    Im confused, hope you can explain to me, thank you !

    January 22, 2021 at 2:38 pm #607556
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 42786
    • ☆☆☆☆☆

    Although you are correct (and this question and answer were prepared by the previous examiner), it doesn’t actually make any difference.

    There should have been a balancing allowance of 18.71 in the final year.

    Instead, the examiner has a writing down allowance of 6.43 and a balancing allowance of 12.28.
    12.28 + 6.43 = 18. 71 🙂

    February 10, 2021 at 5:28 am #609876
    wanyo
    • Topics: 1
    • Replies: 4
    • ☆

    Thank you so much for the clarification , sir. Understood 🙂

    February 10, 2021 at 10:45 am #609907
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 42786
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Q: Investment Project Review – June 2009 (A) unclaimed allowance calculation’ is closed to new replies.

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