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Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can be claimed on this property.

User Chy
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Answer:

Dismantling cost is the expense which is caused when the asset is about to bring in its original state when it was not used.

Step-by-step explanation:

To: Director Finance

From: Business Analyst

Subject: Cost recovery for dismantling

It is to bring into your knowledge that the land area near the plant was used by our company several years ago. The company has decided to sell it to one of our client. He has agreed to purchase the land but the erosion caused due to plant and manufacturing activities need to be restored. For this purpose we have decided to fill the erosion holes with waste material.

Your Kind approval is required for the process.

User Gabriel Diez
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