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AusCo is in the business of manufacturing furniture and has an annual turnover of $2...

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Accounting

AusCo is in the business of manufacturing furniture and has an annual turnover of $2 billion. In this income year, it intends to pay $30 million to acquire a competitor, comprising of the following items: (1) Production equipment: $10 million; and (2) Registered design: $20 million. You are required to advise the company of its income tax implications of the above proposed transaction. You are NOT required to compute the amount of capital allowance.

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