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he initial basis has been fully recovered. In other words, the taxpayer's depletion deduction can exceed the cost of the depletable asset.()
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A company's policy is to charge depreciation on plant and machinery at 20% per year on cost, with proportional depreciation for items purchased or sold during a year. The company's plant and machinery at cost account for the year ended 30 September 20X3 is shown below. PLANT AND MACHINERY - COST $ $ 20X2 20X3 1 Oct Balance 200,000 30 Jun Transfer disposal account 40,000 30 Sep Balance 210,000 20X3 1 Apr Cash-purchase of plant 50,000 _______ 250,000 250,000 What should be the depreciation charge for plant and machinery (excluding any profit or loss on the disposal) for the year ended 30 September 20X3?
A、$43,000
B、$51,000
C、$42,000
D、$45,000
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