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CIMAPRA19-F01-1 Exam - Topic 5 Question 47 Discussion

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.
D) A balancing charge of $1,500 increases taxable profit.
A) A balancing allowance of $1,500 increases taxable profit.
B) A balancing allowance of $1,500 reduces taxable profit.
C) A balancing charge of $1,500 reduces taxable profit.

CIMAPRA19-F01-1 Exam - Topic 5 Question 47 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 47
Topic #: 5
[All CIMAPRA19-F01-1 Questions]

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.

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Suggested Answer: D

by Ceola at May 04, 2022, 01:27 AM

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Katheryn
10 months ago
How do we even get $1,500? That seems random.
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Novella
10 months ago
Yeah, I agree with Izetta, it’s definitely a charge, not an allowance.
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Edna
11 months ago
Wait, a balancing allowance increases profit? That sounds off.
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Izetta
11 months ago
I think it’s option C, a balancing charge reduces taxable profit.
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Dean
11 months ago
The plant was sold for $24,000, so there’s definitely a balancing charge.
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Curt
11 months 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.
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Wilbert
11 months 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.
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Devora
11 months 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.
upvoted 0 times
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