Question 3. The following information is given in respect of Transport plc: a) Non-current assets consist entirely of plant and machinery. The net book value is £1,100,000 and the tax written down value after capital allowances (tax base) is £1,000,000. b) The provision for deferred taxes (all of which relates to fixed assets timing differences) on 30/06/2010 was £21,000. c) The company's capital expenditure forecasts indicate that capital allowances and depreciation in future years will be: Year ended 30th June (£) 2011 2012 2013 2014 Depreciation charge for year (£) 12,000 14,000 20,000 40,000 44,000 46,000 Capital Allowances for year (£) 53,000 49,000 36,000 32,000 32,000 36,000 2015 2016
Question 3. The following information is given in respect of Transport plc: a) Non-current assets consist entirely of plant and machinery. The net book value is £1,100,000 and the tax written down value after capital allowances (tax base) is £1,000,000. b) The provision for deferred taxes (all of which relates to fixed assets timing differences) on 30/06/2010 was £21,000. c) The company's capital expenditure forecasts indicate that capital allowances and depreciation in future years will be: Year ended 30th June (£) 2011 2012 2013 2014 Depreciation charge for year (£) 12,000 14,000 20,000 40,000 44,000 46,000 Capital Allowances for year (£) 53,000 49,000 36,000 32,000 32,000 36,000 2015 2016
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education