CAF-2 · Chapter 8 · Question 7 of 15
A depreciable asset (machinery) previously used in Pakistan was exported to the USA. The original cost was Rs. 35 million and its WDV at the time of export was Rs. 28 million. What is the gain or loss on disposal for tax purposes?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A) Rs. 7 million gain
Explanation
Where a depreciable asset used in Pakistan is exported, the consideration received shall be treated as exactly equal to the cost of the asset (Rs. 35 million). Gain = Consideration (35m) - WDV (28m) = Rs. 7 million.
More Income from Business - Part Two MCQs
- Q9An entity incurred Rs. 800,000 on feasibility studies and trial production before the commencement of its commercial business operations…
- Q10Mr. Ahmed purchased a commercial shop for Rs. 6,000,000 to use as his business office. He paid the entire amount in physical cash. Under…
- Q11A company purchased a solar plant for Rs. 10,000,000. The Provincial Government voluntarily provided a non-taxable subsidy of Rs…
- Q12A company acquired machinery using a foreign currency loan. Before the loan was fully repaid, the exchange rate increased, increasing the…
- Q13A company acquired a software license (an intangible) on 1st April 2026 (falling in Tax Year 2026) for Rs. 365,000. The useful life of the…