BTX one of those days CAPS
topcat
Trusted RegularRegistered Posts: 452
I do not understand why the first box is wrong i get 5 months taking me up to 5th April = $29,250/12*5 = 12,187.50? The answer is $14625 which is 6 months ? (have i gone mad)
The second one 11/12 has the period august 11 which falls into this tax year , although because it is shorter then 12 months you have to tax the whole first tax year of business so $29,250 + 2 months of the next period which is $9360 = 38610 (which is the answer) . But is my trail of though to get to the answer on the right lines?
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Comments

Hi Topcat,
You seem to have noticed the first period is 10 months long but not applied it to your formula! Therefore I got the below:
2010/11 = £29250*5/10 = £14,625
I believe you understanding is correct, and you'd have overlapping profits as a result.
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Hi Topcat,
You seem to have noticed the first period is 10 months long but not applied it to your formula! Therefore I got the below:
2010/11 = £29250*5/10 = £14,625
I believe you understanding is correct, and you'd have overlapping profits as a result.
Hi Makkusu
thanks for your help i understand now , just takes someone to point out the obvious sometimes to me
had one of them days where every answer is almost wrong0