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using Zimbabwe tax laws Mr Mupambari entered into a 5 year lease agreement with Mr Zvakabatana, the Owner of some piece of property, to lease
using Zimbabwe tax laws
Mr Mupambari entered into a 5 year lease agreement with Mr Zvakabatana, the Owner of some piece of property, to lease Bambana Building. The lease agreement was to run from January 2016 to December 2021. The property would be used for business purposes. One of the conditions of the lease was to effect some improvements on the building at an agreed value of $510000. Due to hyper inflationary pressures Mr Mupambari discovered that the cost of improvements would be four times the agreed cost. He informed Mr Zvakabatana of the expected cost and they agreed that the new estimated cost would be that which took into account the hyper inflation. The agreement on the new cost was made before completion of the building. The improvements were completed at the end of September 2016 at the revised agreed amount. Mr Mupambari started using the premises in January 2017Step by Step Solution
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