CTV Limited has an asset which cost $400 and against which depreciation of $200 has accumulated. The accumulated depreciation for tax purposes is $280 and the company tax rate is 30%. The tax base of this asset is:

Question

Quizplus · Accepted Answer

The tax base of the asset is the cost of the asset minus the accumulated depreciation for tax purposes. In this case, the cost of the asset is $400 and the accumulated depreciation for tax purposes is $280. Therefore, the tax base of the asset is $400 - $280 = $120.

CTV Limited Has an Asset Which Cost $400 and Against