Alex Sharma (CA & ICWA Final student; CS & CFA completed) (194 Points)
16 April 2010
Pls help me In Leasing Sums.......
Regarding the Salvage Value of Plant after 8 years....
in some Problems......the Value is taken Post-Tax i.e Capital Gains portion is taxed
in some Problems....the Salvage value is taken Directly!
What to do in Exams???
Help
CA Ruben Balooni
(Professionalism ™)
(1324 Points)
Replied 17 April 2010
if the salvage value is more/less than WDV of that asset in the 8th year then there will be either CAPITAL GAIN (in case salvage value is more than WDV of asset) or Tax Saving on CAPITAL LOSS (in case salvage value is less than WDV of the asset)..
IF SALVAGE VALUE is equal to (=) WDV of the asset than u have to take salvage value directly without deducting any tax as there will be no profit/loss (cost=sale price)...
hope this helps,
Rgds,
G9!
Jason
(Student)
(179 Points)
Replied 17 April 2010
Please help me with regard to the November 2007 leasing problem.
I dont understand when to take which discounting factor !!!
Sometimes cost of capital is taken and sometimes interest rate after tax is taken?
HELP !!
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