banner_ad

AMA CVP Doubt CA Final Chapter 2 Group II

CA Final 366 views 24 replies
Here Depreciation indirectly mentions cost of asset purchased

If cost of New asset is 1L Net Incremental depreciation Benefit will be 9.65L
1) Tax will be charged on Profit ( After profit incurred tax will be charged )
Here our aim is to increase profit Hence tax is irrelevant
2) There r some cases where we will consider tax - Because we want to earn desired profit after Tax
Thanks for such elaborate explanation. last query,

In second case, scrap value is 1420000

Depreciation(new-old) = 1065000-0=1065000 is incremental cost.

But in the first case, when scrap value is 0
Depreciation(new-old)=1065000-1420000=(355000) is incremental cost by equation.

So net incremental benefit of 320000. is it somehow related to you mentioning related to "old (NOT NEW)"

Thanks in advance
Yes
Net Incremental cost of old machine means Net Incremental Benefit of New machine
Both are same
I guess it is like 355000 loss + depreciation of 1065000 thus total 1420000 incremental cost.
but then cost will be then 1065000 - 355000= 710000??!!!
ignore the reply prior to above
pls Ignore the concept that Gross Cost of New Machine I put that in Indirect way
freshly read from Elaborations
Take cost of New machine as 10.65L only &
compare depreciation & Scrap benefits for Both
Thank you for you time.. appreciate it very much..


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details