Calculate the depreciation allowance: During the year, an old delivery van was traded-in for $40,000 to acquire

Calculate the depreciation allowance:

 

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During the year, an old delivery van was traded-in for $40,000 to acquire an electric van which had a cost of $440,000. The net book value of the old van was $20,000 (original cost $200,000). There is no other addition to fixed asset during the year. Based on 2021/22 profits tax return, the tax written down value of the plant and machinery 20% pool is $120,000 and 30% pool is $160,000. During the year, an old delivery van was traded-in for $40,000 to acquire an electric van which had a cost of $440,000. The net book value of the old van was $20,000 (original cost $200,000). There is no other addition to fixed asset during the year. Based on 2021/22 profits tax return, the tax written down value of the plant and machinery 20% pool is $120,000 and 30% pool is $160,000.

Answer rating: 100% (QA)

1 Taxable Value of the Old Delivery Van The net book value of the old van is 20000 Since it was trad... View the full answer