Tax3761 exam 2024
, QUESTION 1
Part A
Adjusted Taxable Income Calculation:
Starting point: R19,500,000
*Adjustments:*
1. Trading Stock:
- Donation: R270,000 (2 cars x R135,000) – exempt (s18A)
- Closing stock: R2,640,000 (20 cars x R132,000) – deduct
- Trading stock adjustment: R2,640,000 – R1,750,000 = R890,000 (deduct)
Adjusted taxable income: R19,500,000 – R890,000 = R18,610,000
1. Warehouse:
- Construction cost: R8,000,000 – capitalize (s11€)
- No depreciation claimed yet, as completed on 20 February 2024
No adjustment
1. Computer Server:
, QUESTION 1
Part A
Adjusted Taxable Income Calculation:
Starting point: R19,500,000
*Adjustments:*
1. Trading Stock:
- Donation: R270,000 (2 cars x R135,000) – exempt (s18A)
- Closing stock: R2,640,000 (20 cars x R132,000) – deduct
- Trading stock adjustment: R2,640,000 – R1,750,000 = R890,000 (deduct)
Adjusted taxable income: R19,500,000 – R890,000 = R18,610,000
1. Warehouse:
- Construction cost: R8,000,000 – capitalize (s11€)
- No depreciation claimed yet, as completed on 20 February 2024
No adjustment
1. Computer Server:
