FAC3701 ASSESSMENT 2 OF 2025 EXPECTED SOLUTIONS

QUESTION 1 a)

Calculation of Deferred Tax Balance for Fresh Ltd

(Statement of Financial Position Approach)

Temporary Tax Deferred Tax
Item Carrying Amount (R) Tax Base (R)
Difference (R) Rate (R)

30-Jun-24 28%

, Machinery 675,000 540,000 135,000 28% 37,800
Inventory (FIFO) 620,000 400,000 220,000 28% 61,600
Allowance for credit
-80,000 -20,000 -60,000 28% -16,800
losses
Lease income (Rent in
-36,000 0 -36,000 28% -10,080
advance)

Total Net Deferred Tax
72,520
Liability


30-Jun-25 27%
Machinery 450,000 360,000 90,000 27% 24,300
Inventory (FIFO) 390,000 301,950 88,050 27% 23,774
Allowance for credit
-100,000 -25,000 -75,000 27% -20,250
losses
Lease income (Rent in
0 0 0 27% 0
advance)

Total Net Deferred Tax
Liability
27,824




b) Calculation of Current Tax for the year ended 30 June 2025


Calculation R R