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tax losses to carried forward and wrriten off- tax 30%, CA 25% , Initial investment -30600 , scrap 13500. tax payable in 1 years itime.
sir how to solve this question using the other method i.e tax savings (not minusing and adding back of capital depreciation method)
can u plz solve it using that method -since from fm i am using this method and to change to other method its very confusing0 1 2 3 4 5
cash flows b4 tax -7000 12500 13225 13834As I do explain in my free lectures, you can’t solve it using the ‘other method’ because of the fact that losses are carried forward and reduce the taxable profit in later years (which is something that never happens in Paper FM, but often happens in Paper AFM).
ok got it.
but here in tippletine co question they have not added back tax allowable depreciation.
shouldnt we be adding it back adter deducting tax?or is this the special case where we dont have to add back?
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