CTT Limited has an asset which cost $300 and against which depreciation of $100 has accumulated.The accumulated depreciation for tax purposes is $180 and the company tax rate is 30%.The tax base of this asset is:

Question

Quizplus · Accepted Answer

The tax base of an asset is its cost less any accumulated depreciation for tax purposes. In this case, the cost of the asset is $300, the accumulated depreciation for tax purposes is $180, so the tax base of the asset is $300 - $180 = $120.

CTT Limited Has an Asset Which Cost $300 and Against