,
,-Allowance [s13][2 500 000x5%] [125 000]
-building DD [s13 quat ]
-allowance[5 000 000x55%x8%] [ 220 000 ]
Building EE [S13quin]
-allowance[1 700 000x55%x5%] [46 750]
-Building LL [S13 September]
-Allowance [130 000-10 000]x10% [12000]
-recoupment[10 000limited to 12 000] 10 000
-buildingxx[s13]
-allowance[30 000x1/5x3/12] [1500]
-office furniture
-Allowance[66 000x1/6x2/12] [1833]
-scrap allowance [9167]
Selling price[limited to cost]-tax value
=0[Limited to 66 000]-9167
Tax value beginning year 11 000
Allowance during year [1 833]
Tax value 9167
-heavy duty truck
Allowance[22 500x1/3] [75 000]
-Toolbox
-allowance-small asset in full [2 000]
-rental –photo copy machine [42 000]
Taxable income 4’615’997
Tax liability=4’615’997x28%=
, 1’292’479’16
Question 2
Income tax liability
Scales 2 000 000
Recoupment [s22[8] 25 000
Local dividend 50 000
Exemption [s10] [50 000]
Rental income[5 000x12] 60 000
-leasehold improvements 300 000
-include lesser of approved amount or actual cost
-allowance for leasehold improvements are for the leasee
INCOME 2’385’000
WATER and electricity [45 000]
Salaries [280 000]
Opening stock[s22] [ 200 000]
Purchases[s11a] [600 000]
Closing stock[s22] 350 000
Patent purchased[500 000x5%] [25 000]
Renewed [16 000]
-restraint of trade
-deduct lesser of
330 000/5 or330 000/3 [66 000]
-bad debts-Trade debtors [30 000]
,-Allowance [s13][2 500 000x5%] [125 000]
-building DD [s13 quat ]
-allowance[5 000 000x55%x8%] [ 220 000 ]
Building EE [S13quin]
-allowance[1 700 000x55%x5%] [46 750]
-Building LL [S13 September]
-Allowance [130 000-10 000]x10% [12000]
-recoupment[10 000limited to 12 000] 10 000
-buildingxx[s13]
-allowance[30 000x1/5x3/12] [1500]
-office furniture
-Allowance[66 000x1/6x2/12] [1833]
-scrap allowance [9167]
Selling price[limited to cost]-tax value
=0[Limited to 66 000]-9167
Tax value beginning year 11 000
Allowance during year [1 833]
Tax value 9167
-heavy duty truck
Allowance[22 500x1/3] [75 000]
-Toolbox
-allowance-small asset in full [2 000]
-rental –photo copy machine [42 000]
Taxable income 4’615’997
Tax liability=4’615’997x28%=
, 1’292’479’16
Question 2
Income tax liability
Scales 2 000 000
Recoupment [s22[8] 25 000
Local dividend 50 000
Exemption [s10] [50 000]
Rental income[5 000x12] 60 000
-leasehold improvements 300 000
-include lesser of approved amount or actual cost
-allowance for leasehold improvements are for the leasee
INCOME 2’385’000
WATER and electricity [45 000]
Salaries [280 000]
Opening stock[s22] [ 200 000]
Purchases[s11a] [600 000]
Closing stock[s22] 350 000
Patent purchased[500 000x5%] [25 000]
Renewed [16 000]
-restraint of trade
-deduct lesser of
330 000/5 or330 000/3 [66 000]
-bad debts-Trade debtors [30 000]
