In June 2007 Welldone (Pty) Ltd (which has a December year end) acquired and bought into use in a process of manufacture, a machine (Machine 1) that cost R100 000 (net of VAT). In March 2008 the machine was sold for R120 000 (net of VAT) and a replacement machine (Machine 2) was acquired for R200 000 (net of VAT). Welldone (Pty) Ltd elects that the provisions of paragraph 66 of the Eighth Schedule apply. 

You are required to show how the recoupment would be dealt with.

Answer rating: 100% (QA)

From the facts given all conditions for recoupment clearly ... View the full answer