Spring Ltd purchases an asset for R 3 000 000 and expects to use the machine for
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Question:
Spring Ltd purchases an asset for R 3 000 000 and expects to use the machine for 4 years. The firm will be able to deduct a SEC12C Wear and Tear allowance as follows for the next 5 years. 20% , 20% , 20% and 20% per annum. The business will be able to sell the asset at the end of 4 years for R 620 000 . At the end of the 4th year the firm will experience a ________
a) recoupment of R50 000
b)scrapping allowance of R20 000
c) scrapping allowance of R50 000
d) recoupment of R 20 000
e) recoupment of R440 000
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