FAC3764
Opened: Thursday, 17 April 2025, 8:00 AM
Closes: Thursday, 17 April 2025, 11:00 PM
PLEASE READ THE INSTRUCTIONS CAREFULLY BEFORE COMMENCING WITH THE
QUIZ:
- This quiz will open at 8:00 and close at 23:00 on 17 April 2025. You can take the quiz
anytime before it closes. Late submissions and requests for extensions will not be
accepted.
- The quiz is timed, therefore you need to complete it within one sitting. Once you start
the quiz, you will have 45 minutes to complete and submit. If your time lapses, the quiz
will auto-submit your answers.
- Only 1 attempt is allowed. Therefore, you will not be able to change your answers once
you have submitted.
- The scenario to the quiz will be included on the first page of the quiz. You will be able to
scroll between the scenario and the questions. You are also welcome to copy and paste
the scenario to a separate document for your own convenience.
- Each student is allocated 5 quiz questions and the questions are randomised.
- Within each question, there are specific instructions and examples on how to
choose/enter your answer. Please read these very carefully as failure to adhere to these
will result in your answer being deemed incorrect, even though it may be correct.
- You are required to complete your quiz independently, without any assistance. You will
be doing yourself an injustice if you engage in any form of academic dishonesty and this
will show in your final result at the end of the year.
- You will be able to view your marks and feedback on 18 April 2025 from 8:00. Use this
feedback to reflect on where you may have made mistakes and learn from these.
Attempts allowed: 1
Time limit: 45 mins
, A Ltd made a profit before tax of R815 000 for the year ended 31 December 20x4. This
profit before tax was calculated after taking into account the following incomes and
expenses, amongst others:
- Dividend income of R13 500, received from a local company.
- Interest expense of R10 000 on the long-term loan.
- Fines & Penalties of R15 000, which are not deductible for tax purposes.
- Depreciation on machinery. The machinery was purchased at a cost of R140 000 on
1 April 20x4. The machinery became available for use and was brought into use on
1 April 20x4. A Ltd depreciates machinery on the straight-line method over the expected
useful life of five years to a residual value of R30 000. SARS grants S12C wear and tear
allowances at a rate of 40% in the first year and 20% in subsequent years, not
apportioned for part of a year.
- Profit on sale of land: Land was originally purchased at a cost (and base cost) of
R80 000 on 1 January 20x1. It was revalued to a fair value of R100 000 on 31 December
20X3. On 18 November 20x4, the land was sold for R135 000.
For the first provisional tax payment, A Ltd estimated a taxable income of R700 000 for
the year ended 31 December 20x4. This estimate changed to R750 000 when making the
second provisional tax payment. A Ltd paid the first and second provisional tax on the
relevant due dates.
Unless otherwise indicated, SARS taxes incomes on the earlier of receipt or accrual and
allows expenses to be deducted on the earlier of payment or incurral. The normal tax
rate is 27% and the capital gains including rate is 80%. Dividends withholding tax is
levied at a rate of 20%.
You must assume that profit before tax is a starting point when calculating taxable
income.
Accounting policies:
· Machinery is accounted for using the cost model. Depreciation is accounted for
according to the straight line method over the estimated useful life of the asset.
· Land is accounted for using the revaluation model. The revaluation surplus is
realised upon sale of the underlying asset.
Question 1
1)What is the correct adjustment for depreciation of machinery when calculating the
taxable income of A Ltd for the year ended 31 December 20x4?
Opened: Thursday, 17 April 2025, 8:00 AM
Closes: Thursday, 17 April 2025, 11:00 PM
PLEASE READ THE INSTRUCTIONS CAREFULLY BEFORE COMMENCING WITH THE
QUIZ:
- This quiz will open at 8:00 and close at 23:00 on 17 April 2025. You can take the quiz
anytime before it closes. Late submissions and requests for extensions will not be
accepted.
- The quiz is timed, therefore you need to complete it within one sitting. Once you start
the quiz, you will have 45 minutes to complete and submit. If your time lapses, the quiz
will auto-submit your answers.
- Only 1 attempt is allowed. Therefore, you will not be able to change your answers once
you have submitted.
- The scenario to the quiz will be included on the first page of the quiz. You will be able to
scroll between the scenario and the questions. You are also welcome to copy and paste
the scenario to a separate document for your own convenience.
- Each student is allocated 5 quiz questions and the questions are randomised.
- Within each question, there are specific instructions and examples on how to
choose/enter your answer. Please read these very carefully as failure to adhere to these
will result in your answer being deemed incorrect, even though it may be correct.
- You are required to complete your quiz independently, without any assistance. You will
be doing yourself an injustice if you engage in any form of academic dishonesty and this
will show in your final result at the end of the year.
- You will be able to view your marks and feedback on 18 April 2025 from 8:00. Use this
feedback to reflect on where you may have made mistakes and learn from these.
Attempts allowed: 1
Time limit: 45 mins
, A Ltd made a profit before tax of R815 000 for the year ended 31 December 20x4. This
profit before tax was calculated after taking into account the following incomes and
expenses, amongst others:
- Dividend income of R13 500, received from a local company.
- Interest expense of R10 000 on the long-term loan.
- Fines & Penalties of R15 000, which are not deductible for tax purposes.
- Depreciation on machinery. The machinery was purchased at a cost of R140 000 on
1 April 20x4. The machinery became available for use and was brought into use on
1 April 20x4. A Ltd depreciates machinery on the straight-line method over the expected
useful life of five years to a residual value of R30 000. SARS grants S12C wear and tear
allowances at a rate of 40% in the first year and 20% in subsequent years, not
apportioned for part of a year.
- Profit on sale of land: Land was originally purchased at a cost (and base cost) of
R80 000 on 1 January 20x1. It was revalued to a fair value of R100 000 on 31 December
20X3. On 18 November 20x4, the land was sold for R135 000.
For the first provisional tax payment, A Ltd estimated a taxable income of R700 000 for
the year ended 31 December 20x4. This estimate changed to R750 000 when making the
second provisional tax payment. A Ltd paid the first and second provisional tax on the
relevant due dates.
Unless otherwise indicated, SARS taxes incomes on the earlier of receipt or accrual and
allows expenses to be deducted on the earlier of payment or incurral. The normal tax
rate is 27% and the capital gains including rate is 80%. Dividends withholding tax is
levied at a rate of 20%.
You must assume that profit before tax is a starting point when calculating taxable
income.
Accounting policies:
· Machinery is accounted for using the cost model. Depreciation is accounted for
according to the straight line method over the estimated useful life of the asset.
· Land is accounted for using the revaluation model. The revaluation surplus is
realised upon sale of the underlying asset.
Question 1
1)What is the correct adjustment for depreciation of machinery when calculating the
taxable income of A Ltd for the year ended 31 December 20x4?
