FAC3701 - SU4 (B ) - Theory Relating to Deferred Tax on Revalued Capital Assets

Want more free videos to help you pass FAC3701? Visit https://bit.ly/2TMi3uo for more info. HOW DOES TABALDI HELP YOU PASS FAC3701? Tabaldi helps students pass their FAC3701 exams with affordable, easy-to-understand, bite-sized video lectures. Our online classroom is open 24/7 and we offer top quality lecturer support and discussion forums to help you pass your exams. FREE DEMO COURSES FOR UNISA FAC3701 Our DEMO courses are jam-packed with enormous value. When you sign up, you will receive free access to the first study unit of each of our courses. The following is included: • Free lecture videos • Free downloadable content • Free access to our online classroom Read for the lecture: An introduction to the theory behind capital assets and the deferred tax consequences if the asset's carrying amount is intended to be recovered through sale rather than use. If the carrying amount will be recovered through sale, then the deferred tax must be calculated based on the tax rates applicable for sale. This means that there may be recoupment that will be taxed at normal rates, as well as a capital gain that may be taxed at capital gains tax rates. Remember to look out for any permanent difference due to the base cost (Tax Cost) being different to the accounting historical cost. I also give you an updated calculation format to learn and understand.