[usernamestillloading]

Also, we only remove the unrealised element from the profits. What if P sold goods to A and A had sold all those good on to the customer by year end?
Would it be alright to have P earn profits this way? Selling goods to an entity they have significant influence over.

[usernamestillloading]

Got it. So it is 100+150 markup where 100 is the cost.
Thank you!

[usernamestillloading]

Got it. Thank you so much sir!

[usernamestillloading]

Thank you sir.
I am confused because although the amount we need for maintenance of the asset is same, would tax savings not be separate?
Say we have TAD of 100 and same amount is required for maintenance of NCA so we do not add back the amount. This would necessarily mean that we deducted 100 because it was a relevant cash flow, an expense.
But what about the tax saving on TAD?
Should we not deduct 200 to show 100 for maintenance expense on NCA and 100 for TAD, then add back 100 (TAD) to get the total effect?

[usernamestillloading]

Thank you, sir!

Yes, I did go through all your lectures. I misinterpreted the question.

Absolutely love how you’re active and responding. Really helps students who are studying on their own. Great initiative :))

[usernamestillloading]

yeah same. cuz there was no third party and the other options didn’t seem right.

[usernamestillloading]

Hey,
Must say, your message is very helpful. I was wondering if, when we opt for two exams in one sitting, we have to attempt the second immediately after the first or if we have a break in between the two?
Thank you!

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