In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The...
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Accounting
In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is:
a.
A Balancing Charge
b.
A Balancing Allowance
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