this question is wrong ..as there mention in the quest about net of tax........
so this quest will be solved by incremental method.....
please friends ......give ur idea on this
2 Replies
Kritesh Tiwari
(CFP)
(109 Points)
Replied 12 November 2009
| Originally posted by :kritesh tiwari | ||
| " | this question is wrong ..as there mention in the quest about net of tax........ so this quest will be solved by incremental method..... please friends ......give ur idea on this |
" |
please read the question......n answer .. paper is uploaded ...
Attached File : 20 23 pcc costing.pdf downloaded: 259 times
Dhruv
(Chartered Accountant)
(308 Points)
Replied 12 November 2009
The question is not wrong, just that they haven't described the effect of tax shield on depreciation. Since effectively the question assumes everything is net of tax, so depreciation need not be taken separately, just the incremental costs and revenues.
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