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Capital Allowance figures to USE help

hi there
 
will you please help me sort out this simple question .
 
I am a student doing ACCA F6 Taxation , the question requires to calculate the Capital allowance by just giving me the list price for the car £10000 and stated that the company has obtained 10% discount off this price . I am very good at calculating Capital allowance, but for capital allowance purposes the "actual cost" is used rather than the list price.
 
so is the actual cost is list price less the discount which is £9000 (10000-(10000*10/100)), than this figure will have to be used to calculate the capital allowance.
 
 
am  I right?
 
 
many thanks 
 
awdal 
 

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By BKD
04th Dec 2012 08:22

Correct

The list price is a typical exam question red herring (though in this case it is there so that you can work out the cost).

The question seems to be testing your arithmetic skills, rather than your understanding of capital allowances.

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