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Capitalization of failed borewell

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05 April 2019 Whether can we capitalize of expeneses incurred for drilling borewell, however no water found?
If we capitalize, then what is depreciation rate?

Please suggest.

07 April 2019 It should be totally expensed off as there are no future economic benefits from this expense.
Hence there is no question of depreciation.

Regards
CA Kamal Kant



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