TAX2601: Principles of Taxation ASSIGNMENT 4 SEMESTER 1 - 2024
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Course
TAX2601 Principles of Taxation (TAX2601)
Institution
University Of South Africa
TAX2601: Principles of Taxation ASSIGNMENT 4 SEMESTER 1 - 2024
Question 1
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd incurred the following legal expense during the 2023 year of assessment ended 28 February 2023: i) R9 000 legal costs for debt collection. ii) R26 000 legal costs relat...
Started on Wednesday, 26 April 2023, 8:43 PM
State Finished
Completed on Wednesday, 28 April 2024, 4:05 AM
Time taken 53 mins 30 secs
Marks 35.00/35.00
Grade 100.00 out of 100.00
Question 1
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd incurred the following legal expense during the 2023 year of assessment ended 28 February 2023: i) R9 000 legal costs for
debt collection. ii) R26 000 legal costs relating to the drawing up of an agreement to purchase a piece of land. iii) R51 000 relating to a
dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods. Ngwenya (Pty) Ltd's lawyers were successful
in defending the company on this matter. Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.
a. R60 000
b. R9 000
c. R35 000
d. R86 000
Question 2
Complete
Mark 1.00 out of 1.00
Ubuntu (Pty) Ltd owns an office building from which it earns rental income. It was forced to replace the roof due to deterioration (aging)
over the years. The original roof was made of corrugated iron, but the company decided to use roof tiles to fit in with the appearance of
other buildings in the office park. The total cost of the replacement amounted to R320 000. Determine the amount that Ubuntu (Pty) Ltd can
deduct as repairs in calculating the taxable income for the 2023 year of assessment ending 28 February.
a. R320 000
b. R32 000
c. R16 000
d. R Nil
,Question 3
Complete
Mark 1.00 out of 1.00
MENU
On 1 February 2023, Ubuntu (Pty) Ltd acquired a new machine for R800 000. The machine was brought into use the same day in a process of
Dashboard / Calculate
manufacture. Courses the
/ UNISA
capital /allowance
2024 / to
Semester 1 / byTAX2601-23-S1
be claimed / on
Ubuntu (Pty) Ltd TAX2601 Home for
this machine Page / Assessment
income 4 for the 2023 year of
tax purposes
assessment ending 28 February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.
a. R320 000
b. R800 000
c. R160 000
d. R26 667
Question 4
Complete
Mark 1.00 out of 1.00
The following are the transactions of Bhekisizwe for the current year of assessment ended 28 February 2023:
Gross income R945 764
Deductions and allowances R667 865
What is Bhekisizwe's normal tax liability for the 2023 year of assessment, assuming this is a normal company (not a micro business or small
business corporation as defined)?
a. R75 033
b. RNil
c. R13 065
d. R77 812
Question 5
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd has a gardening maintenance contract with Green Fingers CC to maintain its corporate headquarters yard. The terms of
the contract are that the contract is paid in advance on an annual basis. Ngwenya (Pty) Ltd made the payment of R140 000 on 1 January
2023 to cover the period 01 January to 31 December 2023. Determine the amount that is deductible by Ngwenya (Pty) Ltd for its year of
assessment ending 28 February 2023. Assume this is the only prepayment that was made by Ngwenya (Pty) Ltd for the 2023 year of
assessment.
a. R140 000
b. R116 667
c. R23 333
d. R nil
, Question 6
Complete
Mark 1.00 out of 1.00
On 1 February 2023, Ubuntu (Pty) Ltd acquired a second-hand machine for R750 000. The machine was brought into use the same day in a
process of manufacture. Calculate the allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the 2023 year of assessment ending
MENU
28 February 2023. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.
Which one of the following is not true of a micro business?
a. A micro business is taxed at a very low rate.
b. A micro business is taxed on a turnover basis.
c. A micro business is not required to keep a record of expenses.
d. A micro business is taxed on a receipt basis and the accrual basis.
Question 8
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd purchased a trademark called Nix on 1 November 2022 and a patent called Tix on 1 December 2022. The trademark cost
was R700 000 and the cost of the patent was R650 000. Calculate the deduction or allowance available to Ngwenya (Pty) Ltd for the year of
assessment ending 28 February 2023.
a. Trademark R11 667 Patent R8 125
b. Trademark R0 Patent R32 500
c. Trademark R0 Patent R8 125
d. Trademark R35 000 Patent R32 500
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