Can you calculate this FCFE??

[rawraw]

@verse214

You adjust NI for the pre-tax gain in the sale because you will accounting for it when you subtract out FCInv. FCInv will be the difference between the ending and beginning PPE + depreciation - actual $'s taken in from the sale of the asset. (Gross amount, not just the profit or loss)

The response that you quoted is the incorrect way to do it.

Ahhhh! Got it.

[peterpan83]

for the NCC portion, why is it 120 (depreciation )- 15 (gain) ,

shouldn’t it be 120 (depreciation) - 20 (BV of the asset) ?

[dailygrind]

Could someone copy/paste or reference to the actual page and problem # the question shows up on, rather than make guesses? Or point to a similar question maybe in EOC or schweser mock? I am having trouble with this concept (taxes)

[vicky_cool400]

it shd be 235

as per me its shd be= 280 + 120 -40 + 15 - 125 - 15 = 235?

[vicky_cool400]

@rawraw

@verse214

You adjust NI for the pre-tax gain in the sale because you will accounting for it when you subtract out FCInv. FCInv will be the difference between the ending and beginning PPE + depreciation - actual $'s taken in from the sale of the asset. (Gross amount, not just the profit or loss)

The response that you quoted is the incorrect way to do it.

Ahhhh! Got it.

Make a ledger account for PPE.Even gain has to be adjusted