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Chap10 6
Chap10 6
Chap10 6
P10.15.
On July 1, 2018, a taxpayer purchased for R1,000,000 a vehicle which he
used as delivery truck for his trading business. He deducted annual
depreciation on the basis of an estimated useful life of five (5) years. In
July 1, 2021, the automobile was partially damaged in an accidental
collision with another vehicle. The cost of repairs amounted to
P200,000. The taxpayer received insurance proceeds of R100,000 to cover
the loss.
REQUIRED: Determine the amount of loss that could be deducted from
the taxpayer's gross income in 2021. 100,000