BTC Past Paper June 2009

charliemansfield

Task 2.1

Hey Guys

Could help me with this question?

Calculate the adjusted trading profits, after capital allowances, for the year eneded 31 December 2008?

Regarding the lease payments, the suggested answer is

(1/2) x (15600 - 12000) x (2200) / 15600

Why do you have to multiply by a half?

Were does the 12000 come from?

Many Thanks

Charlie

mini_schnauzer

1/2 x (expensive car value - 12,000 being Inland Revenue car value maximum) x (yearly car lease payments) / expensive car value

simples.

meibaker

where did you get the formula from ? i haven't seen this one before! god, i am panicy now!

charliemansfield

Thank you.

The equation is given in the suggested answer, on page 4 of the Model Answers.

charliemansfield

Does anyone no why you mulitiply by a half?

Thanks