BEL200 Exam 2022 SOLUTION
Question 1: Multiple Choice / Fill in the blanks
Reason/Calculation Marks
1 A Capital in nature: The amount represents a repayment of the
original purchase price. The principal debt (capital) reduces
with each repayment. 1
2 C All amounts constitute Gross Income, except for the capital
gain. Gain from the sale of the boat is included in the taxable
capital gain. 2
3 C 1
4 B Assessed capital losses are off-set against capital gains. 1
5 B (R120 000 + R12 000 - R25 000) 1,5
6 B (R50 000 + R 5 000) x 50% 1,5
7 C Cheapest fare paid by other passengers 1
8 A >50% of the communication service received was used for
business purposes, thus no value 1
Available 10
Max 10
, BEL 200 - Exam 2022
Question 2
Prepaid
Expense CGT Taxable income Marks
Taxable Income given R850 000 0,5
1 Repairs -R13 000 0,5
2 Lease
Rental paid =R20 000^ x 12^ -R240 000 1
Lease Improvements R150 000^ / 166 x 6 ^ -R5 422 1
Remaining lease period =(15^ x 12 months^) - 14 months ^ = 166 1,5
section 13 allowance - excess =R50 000^ * 5% ^ -R2 500 1
3 Legal expenses
Compensation -R40 000 0,5
Legal fees -R25 000 0,5
4 Delivery Vehicle
Cost =R265 000 ^ x 100/115 ^ R230 435 1
W&T =R230 ^ * 5/12 ^ -R24 004 1
Add back depreciation R25 000 1
5 Insurance policy
Current year portion =R170 000^/12^ -R14 167 1
Prepaid portion =R170 000 - R14 167^ OR R170 000/12*11^ R155 833 0,5
Not imposed by legislation^ 0.5
Benefits not derived within six months ^ 0,5
Prepaid expense R155 833 > R100 000 ^therefore amount deductible in 2023.^ 1
6 Plucking machine
Cost R120 000^ R120 000 0,5
Accumulated allowance
2022 = R120 000 x 40%^ R48 000 0,5
2023 = R120 000 x 20%^ = R24 000 -R24 000 1
R72 000
Tax value =R120 000 - R72 000 R48 000
Recoupment
SP (Ltd to Cost) - TV =R120 000^ - R48 000^ R72 000 1
CGT
Proceeds R68 000
Sales Price R140 000 ^ 0,5
Recoupment -R72 000 ^ 0,5
Less Base Cost R48 000
Cost Price R120 000 ^ 0,5
Accumulated W&T -R72 000 ^
Capital gain R20 000
Assessed capital loss -R25 000 0,5
Capital loss carried forward =R5 000 (B) ^ 0,5
7 Laptops
Cost =R5 000 ^ x 3^ small item < R 7000 -R15 000 1
Taxable income R543 908 0,5
(R543 908 x 27% ^) use 27% as the year of
assessment ends after 31 March 2023. Please refer to
Tax payable by Murife DontRun page 385 of Silke on how to deal with assessed losses'
(Pty) Ltd limitation R146 855 0,5
Total 20
Max 20
Question 1: Multiple Choice / Fill in the blanks
Reason/Calculation Marks
1 A Capital in nature: The amount represents a repayment of the
original purchase price. The principal debt (capital) reduces
with each repayment. 1
2 C All amounts constitute Gross Income, except for the capital
gain. Gain from the sale of the boat is included in the taxable
capital gain. 2
3 C 1
4 B Assessed capital losses are off-set against capital gains. 1
5 B (R120 000 + R12 000 - R25 000) 1,5
6 B (R50 000 + R 5 000) x 50% 1,5
7 C Cheapest fare paid by other passengers 1
8 A >50% of the communication service received was used for
business purposes, thus no value 1
Available 10
Max 10
, BEL 200 - Exam 2022
Question 2
Prepaid
Expense CGT Taxable income Marks
Taxable Income given R850 000 0,5
1 Repairs -R13 000 0,5
2 Lease
Rental paid =R20 000^ x 12^ -R240 000 1
Lease Improvements R150 000^ / 166 x 6 ^ -R5 422 1
Remaining lease period =(15^ x 12 months^) - 14 months ^ = 166 1,5
section 13 allowance - excess =R50 000^ * 5% ^ -R2 500 1
3 Legal expenses
Compensation -R40 000 0,5
Legal fees -R25 000 0,5
4 Delivery Vehicle
Cost =R265 000 ^ x 100/115 ^ R230 435 1
W&T =R230 ^ * 5/12 ^ -R24 004 1
Add back depreciation R25 000 1
5 Insurance policy
Current year portion =R170 000^/12^ -R14 167 1
Prepaid portion =R170 000 - R14 167^ OR R170 000/12*11^ R155 833 0,5
Not imposed by legislation^ 0.5
Benefits not derived within six months ^ 0,5
Prepaid expense R155 833 > R100 000 ^therefore amount deductible in 2023.^ 1
6 Plucking machine
Cost R120 000^ R120 000 0,5
Accumulated allowance
2022 = R120 000 x 40%^ R48 000 0,5
2023 = R120 000 x 20%^ = R24 000 -R24 000 1
R72 000
Tax value =R120 000 - R72 000 R48 000
Recoupment
SP (Ltd to Cost) - TV =R120 000^ - R48 000^ R72 000 1
CGT
Proceeds R68 000
Sales Price R140 000 ^ 0,5
Recoupment -R72 000 ^ 0,5
Less Base Cost R48 000
Cost Price R120 000 ^ 0,5
Accumulated W&T -R72 000 ^
Capital gain R20 000
Assessed capital loss -R25 000 0,5
Capital loss carried forward =R5 000 (B) ^ 0,5
7 Laptops
Cost =R5 000 ^ x 3^ small item < R 7000 -R15 000 1
Taxable income R543 908 0,5
(R543 908 x 27% ^) use 27% as the year of
assessment ends after 31 March 2023. Please refer to
Tax payable by Murife DontRun page 385 of Silke on how to deal with assessed losses'
(Pty) Ltd limitation R146 855 0,5
Total 20
Max 20
