Its an asset that has been depreciated therefore in operation. Your residual value needs to be determined every year and will eventually become zero or your depreciation rate needs to be reassessed. So as long as your asset is in use and you are testing your residual annually DT should be raised on your intention to recover through use? Presuming the Tax Base is zero your recoupment will be taxed up to cost at the normal tax rate? What does your intention have to do with it if DT HAS to be raised? What could effect your rate 1) Raised at the standard tax rate 2) CGT? So regardless of your intention 30% to cost 15% above cost. If the asset gets classified as held for sale the implications are different. OMO - 2006 board exams. Your example would clearly effect revaluation reserves and DT from that as your intention is key there.
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