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TAX2601 ASSESSMENT 6 SEM 2 OF 2024 EXPECTEDQUESTIONS AND ANSWERS
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TAX2601 ASSESSMENT 6 SEM 2 OF 2024 EXPECTEDQUESTIONS AND ANSWERS. USE IT CORRECTLY AS A GUIDE TO HELP YOU SCORE OVER 75%
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Started on Thursday, 7 November 2024, 9:55 PMState Finished
Completed on Thursday, 7 November 2024, 11:34 PM
Time taken 1 hour 39 mins
Grade 84.00 out of 100.00
Question 1 Ngwenya (Pty) Ltd insures its trading assets on an annual basis. It pays a premium once a
Complete year that covers the period from 1 October to 30 September. On 1 October 2023 it paid R150
Mark 2.00 out
000 as a premium on the insurance cover of its trading assets to 30 September 2024. How
of 2.00 much is deductible by Ngwenya (Pty) Ltd in determining it's taxable income for the year of
assessment ended 29 February 2024.
Flag
question
a. R62 500 OSCAR THE TUTOR
oscardiura@gmail.com
b. R100 000 +27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
c. R nil tutorials
d. R150 000
.
Question 2 Ngwenya (Pty) Ltd experienced a couple of breakins at the shop. The company acquired a
Complete watchdog for R6 700. The dog food expense for the watchdog of R13 200 were incurred for
Mark 2.00 out
the 29 February 2024 year of assessment. The watchdog had to visit the vet during the 2024
of 2.00 year of assessment at a cost of R2 500. What amount can Ngwenya (Pty) Ltd deduct for tax
purposes with regards to the above costs incurred for the 2024 year of assessment?
Flag
question
a. R19 900
b. R nil
c. R15 700
d. R22 400
Question 3 Which of the following entities do not fall within the definition of a company for income tax
Complete purposes?
Mark 0.00 out
of 1.00
a. Foreign farmers
Flag
question b. Cooperatives
c. South African public entities
d. Close corporations
Which one of the following statements does not apply to trusts?
a. Profits earned can be held in the trust or distributed to beneficiaries.
b. The distribution amount depends on the beneficiaries of the trust.
c. A trust is taxed at a fixed rate of 45%.
, d. A trust is a separate legal entity and therefore a separate taxpayer.
Question 4
Complete
Mark 1.00 out
of 1.00
Flag
question
Question 5 Ngwenya (Pty) Ltd incurred some research and development costs. The research and
Complete development was approved by the Minister of Science and Technology under section 11D(9)
Mark 2.00 out
on 30 June 2023. The following expenses relating to this research were incurred during the
of 2.00 2024 year of assessment:
-Computer equipment purchased for R1 300 000 was brought into use on 1 September 2023
Flag
question for the purposes of this research.
-Research consumables for this project were purchased on 31 May 2023 for an amount of
R370 000.
-Salaries of R720 000 were paid to research personnel on 31 December 2023.
Calculate the amount deductible for tax purposes with regards to the consumables expense
for the year ended 28 February 2024.
a. Rnil
b. R185 000
c. R370 000
d. R555 000
Question 6 Bhekisizwe (Pty) Ltd is a small business corporation as defined in the Income Tax Act.
Complete Bhekisizwe (Pty) Ltd had taxable income of R658 000 during the 2024 year of assessment.
Mark 1.00 out
Calculate the amount of tax that Bhekisizwe (Pty) Ltd would need to pay for the year of
of 1.00 assessment ended 31 March 2024.
Flag
question a. R184 240
b. R88 253
c. R177 660
d. R86 858
Question 7 Ngwenya (Pty) Ltd made the following donations during the 2024 year of assessment ending
Complete 29 February:
Mark 2.00 out
Paint supplies valued at R85 000 were donated to a childrens orphanage (a registered public
of 2.00 benefit organisation). At year-end Ngwenya (Pty) Ltd is in possession of a section 18A
receipt for this donation and the orphanage had painted their premises with the donated
Flag
question paint. R25 000 cash to a local home shelter. At the time the donation was made, the home
shelter was waiting to be registered as a public benefit organisation. At year-end Ngwenya
(Pty) Ltd was not in possession of a section 18A receipt for this donation. What will the
donations deduction be for Ngwenya (Pty) Ltd assuming they had a taxable income of R700
000 before taking the above into account?
, a. R110 000
b. R85 000
c. R70 000
d. R nil
Question 8 Ngwenya (Pty) Ltd in December 2023, sponsored a national weightlifting championship with
Complete branded equipment (displaying their logo) worth R230 000. How much can Ngwenya (Pty) Ltd
Mark 2.00 out
deduct from its income for the year of assessment ended 29 February 2024.
of 2.00
Flag a. R115 000
question
b. R230 000
c. R23 000
d. R nil
Question 9 During the 2024 year of assessment ending 29 February 2024, Ngwenya (Pty) Ltd moved to
Complete new premises. The total cost of this move was R25 000, made up as follows:
Mark 2.00 out
-moving of its shop equipment - R13 500
of 2.00 -moving of all its trading stock - R11 500
Flag
question What is the effect of these expenses to trading stock?
a. No amount is added to or deducted from trading stock
b. R11 500 is deducted from the value of trading stock
c. R25 000 is added to the value of trading stock
d. R11 500 is added to the value of trading stock
Question 10 Ngwenya (Pty) Ltd incurred some research and development costs. The research and
Complete development was approved by the Minister of Science and Technology under section 11D(9)
Mark 2.00 out
on 30 June 2023. The following expenses relating to this research were incurred during the
of 2.00 2024 year of assessment:
Computer equipment purchased for R1 200 000 was brought into use on 1 September 2023
Flag
question for the purposes of this research.
Research consumables for this project were purchased on 31 May 2023 for an amount of
R360 000.
Salaries of R700 000 were paid to research assistants on 31 December 2023.
Calculate the allowance that Ngwenya (Pty) Ltd can claim for tax purposes with regards to
the computer equipment for the year ended 29 February 2024.
a. R360 000
b. R1 800 000
c. R600 000
, d. R200 000
Question 11 Which of the following statements is incorrect with regards to trusts?
Complete
Mark 1.00 out a. The profit earned by a trust must be distributed to the beneficiaries if the trust deed
of 1.00
stipulates it.
Flag b. A trust deed is a legal document that is drawn up by the original donor to the trust.
question
c. A trust is a separate legal entity and is therefore a separate taxpayer.
d. A trust is taxed at a flat rate of 40%.
Question 12 Which of the following is incorrect with regards to Sole Traders?
Complete
Mark 1.00 out a. A sole trader is not a separate legal entity apart from the natural person and as such
of 1.00
not a separate taxpayer.
Flag b. A sole traders' tax liability is calculated using the tax tables applicable to the sole
question
trader.
c. A Sole trader is entitled to trading deductions and capital allowances against its
trading income.
d. A sole trader is classified as a business and as such are charged tax at a rate of
27%, similar to other business
Question 13 Ngwenya (Pty) Ltd had the following bad debts as at 29 February 2024:
Complete -Bad debts - relating to trade debtors - Namibian located customers = R71 000
Mark 2.00 out
-Bad debts - relating to trade debtors - South African located customers = R157 000
of 2.00 -Bad debts - relating to loans made to former employees = R20 800 (including interest
charged on the loans of R2 400)
Flag
question
Calculate the amount that Ngwenya (Pty) Ltd can deduct for tax purposes with regards to the
bad debts it has incurred during the year of assessment ending on 29 February 2024.
a. R228 000
b. R248 800
c. R230 400
d. R157 000
Question 14 Which of the following statements about turnover tax is incorrect?
Complete
Mark 1.00 out a. A company and a close corporation is disqualified as a micro business if the year of
of 1.00
assessment ends on a date other than the last day of February.
Flag b. Taxable turnover includes cash receipts not of a capital nature from carrying on
question
business activities in the Republic of South Africa.
c. Qualifying turnover only refers to receipts and not to amounts accrued.
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