Page 42 - F1 Integrated Workbook STUDENT 2018
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Chaptter 2








                   Exxampple 2




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

                   Solution

                   Taxx depreciattion

                   WDDV at start of year           $56,0000     ($70,0000 × 80%%)

                   Taxx depreciattion at 20%%     $11,2000


                   Thee asset hadd been purrchased in the previoous accounnting periodd, thereforee
                   tax depreciation has alreeady beenn claimed foor Ye. 31/112/X0. Thiss year's taxx
                   deppreciation mmust be caalculated on 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 lesss
                   acccumulated ttax deprecciation.








































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