Page 3 - F6 - Capital Allowances - Part 3

Example

Mickey Ltd acquired a patent on 1 April 2015 at a cost

of R550 000 and immediately brought it into use in its

income-producing operations. The probable duration

of use of the patent was estimated to be ten years.

Calculate the allowance that may be deducted by

Mickey Ltd under s 11(gC) for the year of assessment

ended 31 December 2015.