Exam (elaborations)
TAX2601 ASSIGNMENT 6 QUESTION ANSWERS SEMESTER TWO
- Institution
- University Of South Africa (Unisa)
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UNISA 2023 TAX2601-23-S2 Assessment 6QUIZ
Started on Wednesday, 8 November 2023, 10:18 PM
State Finished
Completed on Thursday, 9 November 2023, 12:07 AM
Time taken 1 hour 49 mins
Marks 76.00/95.00
Grade 80.00 out of 100.00
Question 1 Ngwenya (Pty) Ltd insures its trading assets on an annual basis. It pays a
Complete premium once a year that covers the period from 1 October to 30
Mark 2.00 out September. On 1 October 2022 it paid R148 000 as a premium on the
of 2.00 insurance cover of its trading assets to 30 September 2023. How much is
deductible by Ngwenya (Pty) Ltd in determining it's taxable income for the
year of assessment ended 28 February 2023.
a. R100 000
b. R148 000
c. R61 667
d. R nil
Question 2 On 1 February 2022, Ubuntu (Pty) Ltd acquired a new machine for R2 150
Complete 000. The machine was brought into use the same day in a process of
Mark 0.00 out manufacture. The machine was totally destroyed during a flash flood after
of 2.00 heavy rains in December 2022. The insurance company indemnified
Ubuntu to an amount of R2 000 000 on 1 February 2023. Calculate any
recoupment or scrapping allowance for Ubuntu (Pty) Ltd on this machine
for the 2023 year of assessment ending 28 February. Assume Ubuntu (Pty)
Ltd is a Small Business Corporation, as defined in the Act.
a. R1 570 000 recoupment
b. R1 140 000 recoupment
c. R2 000 000 recoupment
d. R(150 000) scrapping allowance
, Question 3 Assume the following taxpayer information: The taxpayer is a South
Complete African manufacturing company (not a small business corporation as
Mark 3.00 out defined) with a 31 March 2023 year of assessment. Calculate the taxable
of 3.00 capital gain/(loss) for the current year of assessment taking the BELOW
information into account.
a. R17 200
b. R56 400
c. R(800)
d. R21 500
Question 4 Ngwenya (Pty) Ltd made the following donations during the 28 February
Complete 2023 year of assessment: Paint supplies valued at R98 000 were donated
Mark 2.00 out to a childrens orphanage (a registered public benefit organisation). At year-
of 2.00 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
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 R890 000
before taking the above into account?
a. R98 000
b. R89 000
c. R123 000
d. R nil
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