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In tax allowable depreciation using reducing balance when there is no disposal of machine at the year end(y6) so for y6 do we depreciate first then find the tax on it or
Do we have to find the tax on bal figure ..wdv -0(zero)disposal=bal.
Bal* tax rateWhich is correct ?
1)so for y6 do we depreciate first then find the tax on it or
2)Do we have to find the tax on bal figure ..wdv -0(zero)disposal=bal.
Bal* tax rateOoops. Sorry, I read your initial post too quickly.
Strictly, in the final year there is no depreciation but instead we simply subtract the proceeds (in this case zero) from the tax written down value and the difference is a balancing allowance.
However if you do depreciate in the final year and then subtract the proceeds to get a balancing allowance, the overall affect will be exactly the same.
If there is no disposal so in y6 so we don’t depreciation rgt so we find the tax on it directly
I don’t understand what you mean.
If the asset is not disposed of (and assuming as is normally the case that it is reducing balance depreciation) then the depreciation is calculated every year, and will reduce the taxable profit and therefore save tax.
In the Qn for omnikit for Npv in foreign …
I got this question but don’t have the Acca answer for it can plz help or guide me where can I get the solution for it
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