TAX2601
Assignment 2 QUIZ Semester 12025
Unique Number:
Due Date: 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, QUIZ 2025 UNISA TAX2601-25-S1 Assessment 2
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 37.00 out of 40.00 (92.5%)
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
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,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
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, Question 6
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd incurred the following legal expense during the 2025 year of assessment ended 28 February 2025:
i) R10 000 legal costs for debt collection;
ii) R27 000 legal costs relating to the drawing up of an agreement to purchase a piece of land;
iii) R52 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods.
Ngwenya (Pty) Ltd's lawyers were successful in defending the company on this matter.
Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.
a. R62 000
b. R10 000
c. R89 000
d. R37 000
Question 7
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd made a restraint of trade payment of R2 300 000 to a retiring employee, Mr Msomi, on 1 January 2025. Mr
Msomi was restrained from competing with the company for two 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. R1 150 000
b. R127 778
c. R191 667
d. R766 667
Question 8
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd has a 28 February 2025 year end. The company made the following payments during the 2025 year of
assessment:
1) R70 000 annual annuity for life to Mrs Zikalala, a dependant of a former employee, Mr Zikalala, who retired due to old age
in 2022.
2) R60 000 annual annuity for life to a former employee, Mrs Swarts who retired after being diagnosed with a terminal illness.
Calculate the amount that is deductible for the 2025 year of assessment.
a. R60 000
b. R130 000
c. R70 000
d. R nil
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Distribution of this document is illegal R13,625 per year?
Assignment 2 QUIZ Semester 12025
Unique Number:
Due Date: 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, QUIZ 2025 UNISA TAX2601-25-S1 Assessment 2
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 37.00 out of 40.00 (92.5%)
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
Downloaded by: jerinahmahlasela | Want to earn
Distribution of this document is illegal R13,625 per year?
,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
Downloaded by: jerinahmahlasela | Want to earn
Distribution of this document is illegal R13,625 per year?
, Question 6
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd incurred the following legal expense during the 2025 year of assessment ended 28 February 2025:
i) R10 000 legal costs for debt collection;
ii) R27 000 legal costs relating to the drawing up of an agreement to purchase a piece of land;
iii) R52 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods.
Ngwenya (Pty) Ltd's lawyers were successful in defending the company on this matter.
Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.
a. R62 000
b. R10 000
c. R89 000
d. R37 000
Question 7
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd made a restraint of trade payment of R2 300 000 to a retiring employee, Mr Msomi, on 1 January 2025. Mr
Msomi was restrained from competing with the company for two 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. R1 150 000
b. R127 778
c. R191 667
d. R766 667
Question 8
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd has a 28 February 2025 year end. The company made the following payments during the 2025 year of
assessment:
1) R70 000 annual annuity for life to Mrs Zikalala, a dependant of a former employee, Mr Zikalala, who retired due to old age
in 2022.
2) R60 000 annual annuity for life to a former employee, Mrs Swarts who retired after being diagnosed with a terminal illness.
Calculate the amount that is deductible for the 2025 year of assessment.
a. R60 000
b. R130 000
c. R70 000
d. R nil
Downloaded by: jerinahmahlasela | Want to earn
Distribution of this document is illegal R13,625 per year?
