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A subsidiary acquired a building whose cost is Ksh. 160,000. Local tax legislation prescribes to depreciate buildings on a straight-line basis over 30 years, but
A subsidiary acquired a building whose cost is Ksh. 160,000. Local tax legislation prescribes to depreciate buildings on a straight-line basis over 30 years, but the group's policy is to use the buildings for 20 years and then sell them. Tax rate in the subsidiary's country is 30%.
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Show the 2 approaches that will be used to handle different lives of the building in the group's books of accounts
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