Exam (elaborations)
TAX3701 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2024 (798141) - DUE 19 April 2024
Course
Institution
Book
billclinton tindi
[COMPANY NAME] [Company address]
, Exam (elaborations)
TAX3701 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2024 (798141) - DUE 19 April 2024
Course
Taxation of Business Activities - TAX3701 (TAX3701)
Institution
University Of South Africa (Unisa)
Book
A Student\'s Approach to Income Tax
TAX3701 Assignment 2 (COMPLETE ANSWERS) Semester 1 2024
(798141) - DUE 19 April 2024 ;100% TRUSTED workings, explanations
and solutions. for assistance Whats-App.......0.6.7..1.7.1..1.7.3.9.........
QUESTION 1 (40 marks, 72 minutes) Crystal (Pty) Ltd (“Crystal”) is a
South African resident company with a 31 March financial year end. The
company is a leading manufacturer and distributor of float glass, laminated
glass, and various mirror products to customers in and outside South
Africa. Crystal is registered as a category A vendor for Value-Added Tax
(VAT) purposes and is not a Small Business Corporation as defined in
section 12E of the Income Tax Act no.58 of 1962. The South Africa
Revenue Service (SARS) recognises Crystal’s manufacturing processes as
approved processes of manufacture. All amounts exclude VAT unless
stated otherwise. The following income and expenditure statement was
prepared by Crystal’s accountant for the financial year ended 31 March
2024: Notes Amount (R) Income Revenue 1 3 450 000 Cost of sales 2 (887
500) Investment income 3 312 300 Expenditure Depreciation expense 4
(427 640) Payment to Mrs Van Louw 5 (240 000) Net profit before tax 2
207 160 Notes: 1. Revenue from sales made to customers situated outside
South Africa amounted to R1 034 000. This amount is not yet accounted for
in the above income and expenditure statement. 2. The cost of sales
amount was determined as follows: R Opening
stock…………………………………….. 404 000
Purchases…………………………………………. 725 000 Closing
stock……………………………………… (241 500) Cost of
sales………………………………………. 887 500 The accountant was
uncertain on how to account for the closing stock. On 31 March 2024, it
was found that some of the closing stock items were damaged to an extent
that it would be unethical for Crystal to distribute them at discounted selling
TAX3701 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2024 (798141) - DUE 19 April 2024
Course
Institution
Book
billclinton tindi
[COMPANY NAME] [Company address]
, Exam (elaborations)
TAX3701 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2024 (798141) - DUE 19 April 2024
Course
Taxation of Business Activities - TAX3701 (TAX3701)
Institution
University Of South Africa (Unisa)
Book
A Student\'s Approach to Income Tax
TAX3701 Assignment 2 (COMPLETE ANSWERS) Semester 1 2024
(798141) - DUE 19 April 2024 ;100% TRUSTED workings, explanations
and solutions. for assistance Whats-App.......0.6.7..1.7.1..1.7.3.9.........
QUESTION 1 (40 marks, 72 minutes) Crystal (Pty) Ltd (“Crystal”) is a
South African resident company with a 31 March financial year end. The
company is a leading manufacturer and distributor of float glass, laminated
glass, and various mirror products to customers in and outside South
Africa. Crystal is registered as a category A vendor for Value-Added Tax
(VAT) purposes and is not a Small Business Corporation as defined in
section 12E of the Income Tax Act no.58 of 1962. The South Africa
Revenue Service (SARS) recognises Crystal’s manufacturing processes as
approved processes of manufacture. All amounts exclude VAT unless
stated otherwise. The following income and expenditure statement was
prepared by Crystal’s accountant for the financial year ended 31 March
2024: Notes Amount (R) Income Revenue 1 3 450 000 Cost of sales 2 (887
500) Investment income 3 312 300 Expenditure Depreciation expense 4
(427 640) Payment to Mrs Van Louw 5 (240 000) Net profit before tax 2
207 160 Notes: 1. Revenue from sales made to customers situated outside
South Africa amounted to R1 034 000. This amount is not yet accounted for
in the above income and expenditure statement. 2. The cost of sales
amount was determined as follows: R Opening
stock…………………………………….. 404 000
Purchases…………………………………………. 725 000 Closing
stock……………………………………… (241 500) Cost of
sales………………………………………. 887 500 The accountant was
uncertain on how to account for the closing stock. On 31 March 2024, it
was found that some of the closing stock items were damaged to an extent
that it would be unethical for Crystal to distribute them at discounted selling
