After 4 years of wear and tear at R357 000 per year, the pizza oven (cost R1 785 000) has a tax value of R357 000. It is sold for R34 000. What is the tax effect?

Question

Accepted Answer

Scrapping allowance of R323 000, which reduces tax (an inflow)

Answer

Recoupment of R323 000, a tax outflow

Answer

Recoupment of R34 000, a tax outflow

Answer

No tax effect, because the asset is sold

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After 4 years of wear and tear at R357 000 per year, the pizza oven (cost R1 785...

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