TAX2601-25-S1 Assessment 2
QUIZ
Started on Sunday, 27 April 2025, 7:44 AM
State Finished
Completed on Sunday, 27 April 2025, 9:14 AM
Time taken 1 hour 30 mins
Grade 33.00 out of 40.00 (82.5%)
Question 1
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd made a restraint of trade payment of R1 800 000 to a retiring director, Mr Msomi, on 1 September 2024.
Mr Msomi was restrained from competing with the company for four years from the date of the payment. This payment will
be included in Mr Msomi's gross income for his 2025 year of assessment. Calculate how much will be deductible by
Ngwenya (Pty) Ltd for the year of assessment ending 28 February 2025.
a. R300 000
b. R450 000
c. R225 000
d. R600 000
Question 2
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd manufactures vehicles. During the year of assessment the company incurred the following costs to
manufacture one vehicle:
-Production costs = R2 900 000
-Testing costs to get the vehicle roadworthy = R93 000
-Delivery truck traffic fine - worn-out windshield wipers = R1 700
-Transportation costs to the warehouse = R27 000
What is the cost of this trading stock item for valuation purposes?
a. R2 927 000
b. R3 021 700
c. R3 020 000
d. R2 993 000
, Question 3
Complete
Mark 1.00 out of 1.00
On 31 August 2024, Ubuntu (Pty) Ltd purchased a second-hand manufacturing building from MKM (Pty) Ltd for R6 800 000.
MKM (Pty) Ltd claimed an allowance on the building when it originally purchased the building new for a cost price of R3 900
000 on 1 March 2022. Ubuntu (Pty) Ltd will primarily use the building in an approved manufacturing process. Calculate the
capital allowance available to Ubuntu (Pty) Ltd on the building for the 2025 year of assessment ending 28/29 February.
Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.
a. R136 000
b. R195 000
c. R78 000
d. R340 000
Question 4
Complete
Mark 0.00 out of 1.00
Ngwenya (Pty) Ltd contributes to a provident fund for the benefit of its employees. Contributions amounting to R26 000 000
were paid to the fund during the
28 February 2025 year of assessment. How much is deductible for tax purposes by Ngwenya (Pty) Ltd for the 2025 year of
assessment?
a. R 26 000 000 x 10% equals R2 600 000
b. R 26 000 000 x 20% equals R5 200 000
c. R26 000 000
d. R 26 000 000 x 27,5% equals R7 150 000
Question 5
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd in December 2024, sponsored a national weightlifting championship with branded equipment (displaying
their logo) worth R250 000. How much can Ngwenya (Pty) Ltd deduct from its income for the year of assessment ended 28
February 2025.
a. R25 000
b. R nil
c. R250 000
d. R125 000
QUIZ
Started on Sunday, 27 April 2025, 7:44 AM
State Finished
Completed on Sunday, 27 April 2025, 9:14 AM
Time taken 1 hour 30 mins
Grade 33.00 out of 40.00 (82.5%)
Question 1
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd made a restraint of trade payment of R1 800 000 to a retiring director, Mr Msomi, on 1 September 2024.
Mr Msomi was restrained from competing with the company for four years from the date of the payment. This payment will
be included in Mr Msomi's gross income for his 2025 year of assessment. Calculate how much will be deductible by
Ngwenya (Pty) Ltd for the year of assessment ending 28 February 2025.
a. R300 000
b. R450 000
c. R225 000
d. R600 000
Question 2
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd manufactures vehicles. During the year of assessment the company incurred the following costs to
manufacture one vehicle:
-Production costs = R2 900 000
-Testing costs to get the vehicle roadworthy = R93 000
-Delivery truck traffic fine - worn-out windshield wipers = R1 700
-Transportation costs to the warehouse = R27 000
What is the cost of this trading stock item for valuation purposes?
a. R2 927 000
b. R3 021 700
c. R3 020 000
d. R2 993 000
, Question 3
Complete
Mark 1.00 out of 1.00
On 31 August 2024, Ubuntu (Pty) Ltd purchased a second-hand manufacturing building from MKM (Pty) Ltd for R6 800 000.
MKM (Pty) Ltd claimed an allowance on the building when it originally purchased the building new for a cost price of R3 900
000 on 1 March 2022. Ubuntu (Pty) Ltd will primarily use the building in an approved manufacturing process. Calculate the
capital allowance available to Ubuntu (Pty) Ltd on the building for the 2025 year of assessment ending 28/29 February.
Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.
a. R136 000
b. R195 000
c. R78 000
d. R340 000
Question 4
Complete
Mark 0.00 out of 1.00
Ngwenya (Pty) Ltd contributes to a provident fund for the benefit of its employees. Contributions amounting to R26 000 000
were paid to the fund during the
28 February 2025 year of assessment. How much is deductible for tax purposes by Ngwenya (Pty) Ltd for the 2025 year of
assessment?
a. R 26 000 000 x 10% equals R2 600 000
b. R 26 000 000 x 20% equals R5 200 000
c. R26 000 000
d. R 26 000 000 x 27,5% equals R7 150 000
Question 5
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd in December 2024, sponsored a national weightlifting championship with branded equipment (displaying
their logo) worth R250 000. How much can Ngwenya (Pty) Ltd deduct from its income for the year of assessment ended 28
February 2025.
a. R25 000
b. R nil
c. R250 000
d. R125 000
