Bridge transfers an asset that originally cost $10 000 to its wholly owned subsidiary Damian in 2011,
Fantastic news! We've Found the answer you've been seeking!
Question:
Bridge transfers an asset that originally cost $10 000 to its wholly owned subsidiary Damian in 2011, The transfer price was $13 000. Both companies use straight line depreciation at 10% per annum. A full years depreciation is made in the year of acquisition and none in the year of disposal. Bridge had owned the asset for 5 years prior to the period in which the asset was transferred.
Ignoring the effects of deferred tax what adjustment is required to group profits in 2011?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: