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17 Alpha Ltd has completed the construction of an office building by 29 February 2024, at a cost of R3 500 000. The building is
17 Alpha Ltd has completed the construction of an office building by 29 February 2024, at a cost of R3 500 000. The building is erected on rented premises and the rental agreement requires the dismantling of the building at the end of its useful life. The expected dismantling and removal costs at the end of the useful life, which is deemed to be 20 years, will amount to R400 000. REQUIRED: If the applicable discount rate after tax (27%) is 7,30%, the cost of the office building on 29 February 2024, will be? 1. R3 559 457 2. R3 500 000 3. R3 599 578 4. R3 900 000
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