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Estimated cost of expansion

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Reference no: EM131669503

Contruction expenditure of the factory may be depreciated for tax purposes at a rate of 4% per annum. Use the prime cost method.

$1,250,000 estimated cost of expansion can be broken down as follows:

  1. Construction of new factory: $400,000
  2. Fittings: $200,000
  3. Machinery: $650,000

Reference no: EM131669503

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