The company also purchased for the managing director a new car at a cost of $120,000. The car was purchased by the company on 1 July of the current year. The effective life of the car is 7.5 years. For accounting purposes the financial accountant has claimed depreciation in the accounts of $12,000 being 10% of the cost. The company directors come to you as the taxation adviser of the company and wish to know how each of the items mentioned above are to be treated for taxation purposes.
The company also purchased for the managing director a new car at a cost of $120,000. The car was purchased by the company on 1 July of the current year. The effective life of the car is 7.5 years. For accounting purposes the financial accountant has claimed depreciation in the accounts of $12,000 being 10% of the cost. The company directors come to you as the taxation adviser of the company and wish to know how each of the items mentioned above are to be treated for taxation purposes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The company also purchased for the managing director a new car at a cost of $120,000. The car was purchased by the company on 1 July of the current year. The effective life of the car is 7.5 years. For accounting purposes the financial accountant has claimed
The company directors come to you as the
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