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

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 47
Topic #: 5

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.

AA balancing allowance of $1,500 increases taxable profit.

BA balancing allowance of $1,500 reduces taxable profit.

CA balancing charge of $1,500 reduces taxable profit.

DA balancing charge of $1,500 increases taxable profit.

Show Suggested Answer

Suggested Answer: D

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

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