At 13 minutes, would the maintenance of the NCAs not attract tax relief? And so should be included above the taxable line and then the TAD added back on as normal?
In the opentuition forum, John said we can do that however he's just taking examiner's approach. The approached that he shows just shows how TAD and expenses on maintenance cost can be cancelled out for each other.
No, because an amount equal to the TAD is spend on maintaining the assets. If you have more questions of our tutor than you must ask in the free Ask the Tutor Forum on our free website.
At 13 minutes, would the maintenance of the NCAs not attract tax relief? And so should be included above the taxable line and then the TAD added back on as normal?
True I also think the same
That Taxable Allowance difference is actually the Maintenance of NCA as per the question.
I am missing the tax benefit
Why taxable profit doesnt captured maintenance cost ? I dont understand
In the opentuition forum, John said we can do that however he's just taking examiner's approach. The approached that he shows just shows how TAD and expenses on maintenance cost can be cancelled out for each other.
Thanks
shouldnt we get the TAD added back in the subsidiary after getting the tax amount？
No, because an amount equal to the TAD is spend on maintaining the assets. If you have more questions of our tutor than you must ask in the free Ask the Tutor Forum on our free website.
why is royalties recieved by the James an cashoutflow ?
The subsidiary is paying royalties to James. They are therefore an outflow to the subsidiary and an inflow to James.
Thank you Sir
Tha didn't add back t'depreciation kid.