When a Non-Current Asset Is Revalued the Tax Base Is

question 19

True/False

When a non-current asset is revalued the tax base is not affected as depreciation for tax purposes will continue to be based on original cost.

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Definitions:

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.

Consolidated Inventory

The aggregate amount of inventory held across all subsidiaries of a parent company, combined in the financial statements to present a total inventory figure for the entire corporate group.

Acquisition Business Combination

An event or transaction where one entity gains control over one or more companies.

Fair Values

The expected value from selling an asset or what it would cost to delegate a liability in an orderly exchange scenario with market participants on the designated assessment date.