Exam (elaborations)
TAX2601 ASSESSMENT 6 ALL QUESTIONS ARE COVERED
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- University Of South Africa (Unisa)
TAX2601 ASSESSMENT 6 ALL QUESTIONS ARE COVERED
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TAX2601-S2-24-ASSESSMENT-6Quiz
Assessment 6 TAX2601
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Grade 81.00 out of 100.00
Question 1
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Assume the following taxpayer information: The taxpayer is a South African manufacturing company
(not a small business corporation as defined) with a 31 March 2024 year of assessment.
Calculate the base cost for capital gains tax purposes for the machine BELOW.
a.
R755 000
b.
R480 000
c.
R205 000
d.
R320 000
Question 2
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Ngwenya (Pty) Ltd during the 29 February 2024 year of assessment, had the following two transactions
occur which the financial accountant asks you what the tax implications are: Transaction 1: Ngwenya
purchased trading stock during the current year of assessment at a cost of R30 000. This stock was given
for no consideration to a homeless shelter. The shelter is not a registered PBO. The stock had a market
value of R45 000.
, TAX2601-S2-24-ASSESSMENT-6
Transaction 2: Trading stock (specific items) were purchased for an amount of R135 000 during the year
of assessment. None of this trading stock were sold and at year-end after the auditors' stock take, these
specific items had a market value of R70 000.
Which amounts need to be deducted or added in calculating Ngwenya (Pty) Ltd's taxable income for the
2024 year of assessment with regards to transaction 1 and 2.
a.
Transaction 1: R15 000 Transaction 2 R(65 000)
b.
Transaction 1: R30 000 Transaction 2 R70 000
c.
Transaction 1: R30 000 Transaction 2 R135 000
d.
Transaction 1: R15 000 Transaction 2 R(135 000)
Question 3
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Bhekisizwe (Pty) Ltd is registered as a micro business and has compiled the following financial
information for the current year of assessment:
Cash sales to customers R850 000
Investment income R15 000
Proceed on sale of business vehicle R210 000
Operating costs of business R320 000
Repairs & maintenance business vehicle R3 000
Calculate Bhekisizwe (Pty) Ltd's tax liability for the 2024 year of assessment.
a.
R32 250
b.
R19 500
c.
R19 410
d.
, TAX2601-S2-24-ASSESSMENT-6
R13 250
Question 4
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Ngwenya (Pty) Ltd advertises its products on television. It pays a premium once a year. On 1 July 2023 it
paid R840 000 for advertisements that will be aired until 30 June 2024. How much is deductible by
Ngwenya (Pty) Ltd in determining it's taxable income for the year of assessment ended February 2024.
a.
R840 000
b.
R100 000
c.
R560 000
d.
R nil
Question 5
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On 1 February 2023, Ubuntu (Pty) Ltd acquired a new non-manufacturing machine for
R920 000. The machine was brought into use immediately. On 1 October 2023 the machine was sold for
R770 000 cash. Calculate any recoupment for Ubuntu (Pty) Ltd on this machine for the 2024 year of
assessment ending 29 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in
the Act. In terms of Binding General Ruling No. 7, an acceptable write-off period for this asset would be
three (3) years.
a.
R310 000
b.
R463 333
c.
R586 000
, TAX2601-S2-24-ASSESSMENT-6
d.
R54 444
Question 6
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Which of the following is true about Trusts?
a.
Trusts pay tax at a flat rate of 45%.
b.
Trusts are not provisional taxpayers.
c.
Trusts is not liable for normal tax, as they are not a separate legal entity.
d.
The only use of a trust is for tax evasion purposes.
Question 7
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Ngwenya (Pty) Ltd had closing trading stock with a value of R1 450 000 at the end of the company's year
of assessment on 28 February 2023. The trading stock was sold by the company for R1 800 000 during its
2024 year of assessment ended 29 February 2024. Calculate taxable income of Ngwenya (Pty) Ltd for
2024 year of assessment.
a.
R350 000
b.
R1 800 000
c.
R(350 000)
d.
R1 450 000
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