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  • 1.  Depreciation base for Modified Acc. Cost Recogniton

    Posted 07-04-2020 06:17 PM
    Hello,

    Looking at investment decisions PART 2.

    I saw in some problem solutions that salvage value is not included in the depreciation calculation when the depreciation comes from MACR tables. This is contractdictory to general depreciation principle but I would like to ask if I am missing somethins here . Is it an error in the solutions or it this a specific case for depreciation calculations based on MACR?

    Thank you  inadvance for your inputs.

    Regards,

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    Feza
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  • 2.  RE: Depreciation base for Modified Acc. Cost Recogniton

    Posted 07-06-2020 05:44 AM
    Hi Feza,

    MACRS is used calculation of depreciation under the  Tax Basis, No Salvage is allowed. Salvage Value is only to be considered only when Calculating depreciation under Book Basis.

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    Rawthar Shah Abdul Kabur
    Controller
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    Original Message