A company sells a vehicle on 31 December 2020 for N$120 000. The vehicle was originally purchased on 1 January 2019 at a cost of N$300 000. The accumulated depreciation on 31 December 2020 is N$200 000. The wear and tear allowances that have been claimed on the vehicle up to date of sale are N$150 000. a, What is the profit on sale
b, What is the recoupment/scrapping allowance arising from the sale?
c, What are the taxable profits if the accounting profit was 80 000 as at 31 December 2020?
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