Exam (elaborations)
TAX3701 Assignment 2 Semester 2 2024
- Institution
- University Of South Africa (Unisa)
TAX3701 Assignment 2 Semester 2 2024
[Show more]
1 review
By: ExpertAcademy • 2 months ago
Well Writtten Thanks SmartTutor
Content preview
Question 1Sales/ gross income 7 520 000
Opening inventory (1250 375)
Purchases (4125300)
Closing inventory 1 385 890
Salaries (1275500)
Contributions to a pension fund (195 200)
Annuity to former employee (52 500)
Restraint of trade
(150 000/4) (37 500)
Learner ship agreement
Entering allowance(40 000X7/12) (23 333)
Doubtful-debt
Add back 2023/ add back previous year doubtful debts: (37 500)
(290 000X20%)X25% (14 500)
Legal expenses in respect of collecting outstanding debtors (12 500)
Legal expenses in respect of collecting outstanding staff loans-not in
the production of income
Import of manufacturing machine;
Cost of machine (75 000X17.75) 1 331 250
Capital allowance on machine Delta(1331 250X40%) (532 500)
Foreign exchange difference; loss (18.55-17.75)X75 000 (60 000)
Machine eco
Cost (483 000X100/115) 420 000
2023 capital allowance (420 000X20%) (84 000)
2024 capital allowance (420 000X20%) (84 000) (80 000)
Tax base 252 000
Proceeds 190 000
Less tax base (252 000)
Capital loss 62 000 (62 000)
Wear and tear on delivery vehicle: (2 350 000/4X8/12) (391 667)
Insurance premium
Current expense(240 000/12X5) (100 000)
Prepayment (240 000/12X7)= 140 000 -
Period is more than 6 months and prepayment is more than R100 000
therefore not deductible
Taxable income before donations 715 515
Donations made= 150 000, allow lessor of actual and 10% of 715 515= (71 552)
71 552, therefor allow 71 552 643 964
Taxable income
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 SmartTutors. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. 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