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Why is profit on sale of non current asset 2000 (27000-25000) not subject to tax in proposal 3?
The examiners actually states in his answer the following:
“The profit from the sale of the assets for proposal 3, of $2,000,000, is assumed to be after tax. Answers which consider the profit to be before tax, and therefore only take into account $1,600,000 as the net profit, will receive full credit.”