alleryStart learning →Interest received in advance of Rs. 100 was already taxed on a cash basis. Its tax base is:
ARs. 100
BRs. 10
CRs. 200
DNil
Answer & Solution
Correct answer: D. Nil
None of the revenue will be taxable later, so the carrying amount is reduced by the full Rs. 100 and the tax base is nil.
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