Question：Ibsley Ltd disposes of a building which has been used for business purposes.
　　The company intends to invest all of the proceeds in one of the following:
　　fixed machinery, or
　　40 year lease on a factory
　　The investment will be within the required time period.
　　The gain made on the disposal of the building could be rolled over into the base cost of which of these assets?
　　A. Fixed machinery only.
　　B. Both.
　　C. 40 year lease only.
　　D. Neither.
　　The correct answer is:Neither.
　　解析：If the reinvestment is in a depreciating asset (an asset with an expected life of 60 years or less, or fixed plant and machinery) it cannot be rolled over into the cost of the replacement asset; instead it is deferred (held over) until the earliest of;
　　· the disposal of the replacement asset.
　　· ten years after the acquisition of the replacement asset.
　　· the date the replacement asset ceases to be used in the trade.