Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

question about Sept / Dec 19 Q1 EVA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › question about Sept / Dec 19 Q1 EVA

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 15, 2021 at 4:26 am #627786
    winnielai119
    Participant
    • Topics: 9
    • Replies: 7
    • ☆

    The answer showed “Lost tax relief on interest” is $53M, may I know how to calculate it?

    Thanks.

    July 15, 2021 at 1:50 pm #627849
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    Interest paid = 213.

    Tax rate 25%

    25% x 213 = 53.25, rounded to 53.

    If no interest had been paid (to get NOPAT), profits would be 213 higher….but tax would be 53 higher too.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.