TAX2601 Assignment 4 Second Semester 2022

TAX2601
ASSIGNMENT 4
SECOND SEMSTER 2022


BY: MTHOMBENI : 0767297208

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, QUESTIONS ARE THE SAME BUT AMOUNTS ARE NOT, YOU JUST NEED TO SUBTITUTE THE
AMOUNTS ON THE CALCULATIONS I PROVIDED



As a result of the COVID 19 Lockdowns, Ngwenya (Pty) Ltd experienced a couple of breakins at
the shop. The company acquired a watchdog for R7 000. The dog food expense for the watchdog of R12
000 were incurred for the 28 February 2022 year of assessment. The watchdog had to visit the vet during
the 2022 year of assessment at a cost of R2 800.
What amount can Ngwenya (Pty) Ltd deduct for tax purposes with regards to the above costs incurred for
the 2022 year of assessment?
a.
R14 800
b.
R nil
c.
R21 800
d.
R19 000
 12000+2800


Ngwenya (Pty) Ltd has a gardening maintence contract with Green Fingers CC to maintain its
corporate headquarters yard. The terms of the contract are that the contract is paid in advance on an
annual basis. Ngwenya (Pty) Ltd made the payment of R140 000 on 1 January 2022 to cover the period
01 January to 31 December 2022.
Determine the amount that is deductible by Ngwenya (Pty) Ltd for its year of assessment ending 28
February 2022. Assume this is the only prepayment that was made by Ngwenya (Pty) Ltd for the 2022
year of assessment.
a.
R23 333
b.
R nil
c.
R116 667
d.
R140 000

 140000X2/12




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