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Exam (elaborations)

TAX2601 EXAM PACK

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This exam pack contains • Exam question papers • Memorandums • Summary of the course material • This Exam Pack contains • Exam question papers • Memorandums • Summary of the course material • Additional notes. TAX2601 EXAM PACK 2024

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  • January 20, 2024
  • 27
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
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,October –November 2014
Question 1
calculation of income taxiliability

Taxable income 5 989 747

Water tank;

-Repairs [20 0000]

-Allowance [s11e][36000/6 ] [6 000]

-New machine AA;

Allowance [s12c]-cost [600 000x40%] [240 000]

-moving cost [15 000x6/48] [2 500]

NB [Moving cost in equal installments each year

Hence apportion]

Machine BB

-Allowance [s12c][250 000x20%] [50 000]

-Recoupment 30 000

=selling price[Limited to cost ]less tax value

=180 000[Limited to 250 000]-150 000

=30 0000

Cost 250 000

Allowances-2013 [50 000]

-2014 [50 000]

TAX VALUE 150 000

-Manufacturing building cc

-Allowance [s13][2 500 000x5%] [125 000]

-building DD [s13 quat ]

, -allowance[5 000 000x55%x8%] [ 220 000 ]

Building EE [S13quin]

-allowance[1 700 000x55%x5%] [46 750]

-Building LL [S13 September]

-Allowance [130 000-10 000]x10% [12000]

-recoupment[10 000limited to 12 000] 10 000

-buildingxx[s13]

-allowance[30 000x1/5x3/12] [1500]

-office furniture

-Allowance[66 000x1/6x2/12] [1833]

-scrap allowance [9167]

Selling price[limited to cost]-tax value

=0[Limited to 66 000]-9167

Tax value beginning year 11 000

Allowance during year [1 833]

Tax value 9167

-heavy duty truck

Allowance[22 500x1/3] [75 000]

-Toolbox

-allowance-small asset in full [2 000]

-rental –photo copy machine [42 000]

Taxable income 4’615’997

Tax liability=4’615’997x28%=
1’292’479’16

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