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During the year a company paid for Research costs of N$ 10 000 in cash and immediately wrote the expense off to the statement of

During the year a company paid for Research costs of N$ 10 000 in cash and immediately wrote the expense off to the statement of profit and loss and other comprehensive income in terms of IAS 38 . For tax purposes, these costs relate to a capital asset. Assume the tax authority allows research costs to be deducted over three years on a 50/30/20 basis.

What is the tax base for the transaction at the year end?

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