Page 445 - Microsoft Word - 00 ACCA F9 IWB prelims 2017.docx

Business valuations and market efficiency

Question 6

Tax-allowable depreciation

How would your answer to the previous question change if the sales proceeds
for the asset at the end of the project had been $15,000

tax rate 1 year in
30% arrears

First three years as before
––––––

tax WDV 10,546
t4 sales proceeds 15,000

balancing charge (4,454) (1,336) t5

437