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YZ has $40,000 of plant and machinery which was acquired on 1 June 20X1.Tax depreciation rates on plant and machinery are 25% reducing balance. All plant and machinery was sold for $24,000 on 1 June 20X3.
Calculate the tax balancing allowance or charge on disposal for the year ended 31 May 20X3 and state the effect on the taxable profit.
Suggested Answer: D
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8 comments · newest first
KA
Katheryn
12 months ago
How do we even get $1,500? That seems random.
NO
Novella
1 year ago
Yeah, I agree with Izetta, it’s definitely a charge, not an allowance.
ED
Edna
1 year ago
Wait, a balancing allowance increases profit? That sounds off.
IZ
Izetta
1 year ago
I think it’s option C, a balancing charge reduces taxable profit.
DE
Dean
1 year ago
The plant was sold for $24,000, so there’s definitely a balancing charge.
CU
Curt
1 year ago
Hmm, I'm a bit unsure about this one. I'm trying to decide between options B and D. Both involve using a serverless VPC access connector, but the wording is a bit different. I'll need to re-read the question carefully to make sure I understand the difference.
WI
Wilbert
1 year ago
Hmm, this seems straightforward. I think I'll go with option B - Client IP Address Match to limit the printer to the Citrix LAN users.
DE
Devora
1 year ago
I think I've got a handle on this. Segregating duties is crucial for effective internal controls. The key is to make sure no one person has complete control over a transaction or process. I'll carefully evaluate each option against that principle.