Exam (elaborations)
Detailed Solution Guaranteed Distinction
- Course
- FAC3701 (FAC3701)
- Institution
- University Of South Africa (Unisa)
FAC3701 Assessment 1 Semester 1 of 2024
[Show more]
Content preview
FAC3701 ASSESSMENT 1 – SEMESTER 1 OF2024
(a) Calculation of correct profit before tax for the year ended 31 December 2023
R
Profit before tax 962 000
Sale of delivery vehicle (550 000)
Profit on sale of delivery vehicle (1) 250 000
Prepaid insurance expense (84 000 * ) 70 000
Profit before tax 732 000
Calculations
1. Profit on sale of delivery vehicle
R
Selling price 550 000
Less Carrying amount (300 000)
Cost 500 000
Accumulated Depreciation (200 000)
Profit on sale of delivery vehicle 250 000
(b) Calculation of deferred tax balance for the year ended 31 December 2023
Carrying Tax Base Taxable / Deferred tax
amount (deductible) asset /
temporary (liability) @
differences 27%
R R R R
Delivery vehicles (1) 520 000 487 500 32 500 (8 775)
Allowance for credit losses (2) 35 000 8 750 (26 250) 7 088
Prepaid insurance expenses (3) 70 000 - 70 000 (18 900)
Deferred tax liability – 31 December 2023 76 250 (20 588)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller UNISOLUTIONS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R100,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73918 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now