Chapter 6 - 2.3 - Disposals from the Main Pool

Question 1

When an item from the main pool is sold, before giving WDA for the period, deduct the lower of:

Answer 1

• disposal proceeds
• original cost

Question 2

If the item is not sold, the proceeds are assumed to be…

Answer 2

• the market value on the date of transfer if the asset is permanently removed from the business by the owner
• the scrap value/compensation received if the asset is scrapped/destroyed

Question 3

Where is the deduction made from if the asset being disposed of qualified for AIA or FYA in the year of acquisition?

Answer 3

The deduction is made from the main pool or a single asset pool