The Launch of a new product will necessitate considerable capital expe

The Launch of a new product will necessitate considerable capital expenditure, it will require new manufacturing equipment and some building modifications to accommodate a new equipment. A firm quote $75,000 already for the internal building modification. The accountants stated that the building modifications did not substantially improve the building or increase the life of building, the tax office had given written advice that the modification could be claimed as a tax deduction at the time the expense was incurred.