Page 417 - F1 Integrated Workbook STUDENT 2018

Answers

Exxampple 2

Usinng the infoormation froom exampple 1 calculate the taxx depreciattion for thee
yeaar ended 311/12/X1.
Solution

Taxx depreciattion
WDDV at start oof year $56,0000 ($70,0000 × 80%%)

Taxx depreciattion at 20%% $11,2000
Thee asset hadd been purrchased in the previoous accounnting periodd, thereforee
tax depreciatioon has alreeady been claimed foor Ye. 31/112/X0. Thiss year's taxx
deppreciation mmust be caalculated onn the tax WWDV at thee beginningg of the year,
i.e. $56,000.

WDDV means wwritten dowwn value. TThis repressents the ccost of the asset less
acccumulated ttax deprecciation.

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