Trosoft 2004 Dec (APV)

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November 2, 2014 at 5:49 am #207174
Haru13
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Hi sir,
When calculating the tax allowable for Trosoft pte Ltd, I’m not quite sure how to calculate the tax depreciation.
The answer shows tax depreciation of 540 (y1) 432 (y2 to y6) multiple by 24.5% to reach tax allowable of 132 (y1) and 106 (y2 to y6). In the question, it is stated that tax allowable depreciation on IT infrastructure is 20% for first year and straight line there after.
Could you please explain how would I get the end result?
Thank you in advance!
November 2, 2014 at 10:47 am #207218
John Moffat
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The first year is 20% x 2700 = 540.
This leaves a tax written down value of 2700 – 540 = 2160.
Then is straight line over the remaining 5 years, so 2160 / 5 = 432 per year
These are tax allowable amounts, and they will save tax at 24.5% of these figures.
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