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A mining project requires the purchase of new drilling equipment at a cost of $69750. A further $31500 will be spent on transport, installation and
A mining project requires the purchase of new drilling equipment at a cost of $69750. A further $31500 will be spent on transport, installation and initial maintenance of the equipment, at the very beginning of the project. Of this amount, 35% constitutes maintenance costs and will be written off in Year 1, and the remainder will be capitalised.
Excluding depreciation, what is the amount that will be claimed as tax deduction in Year 1?
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