TAX1501 ASSIGNMENT 3 FOR 2024

Question 1 Not yet answered Marked out of 1.00 Flag question Question text Barbara is 41 years old. She is a salaried person. During the current year of assessment, she paid income protection premiums of R19 000, she contributed towards a retirement fund for R13 000, she bought groceries of R9 000, and made a donation to a public benefit organisation of R11 000. Barbara received the section 18A receipt. YOU ARE REQUIRED to determine the total amount that will be allowed as deductions in the calculation of her taxable income? (Assume that none of the allowable deductions are subject to any limitations, therefore the full amount would be deductible). Select one: a. R32 000 b. R43 000 c. R24 000 d. R52 000 Wickham is 36 years old. He is not an ordinary resident of South Africa. Wickham was physically present in the Republic for the following number of days from 2018 to 2024: 2018 : 104 days 2019 : 105 days 2020 : 103 days 2021 : 204 days 2022 : 106 days 2023 : 207 days 2024: 100 days YOU ARE REQUIRED to choose the correct statement regarding Wickham’s residence status in South Africa for the current year of assessment. Select one: a. Wickham is not regarded as a resident in South Africa because he failed to meet Requirement 3 of the requirements of the physical presence test. b. Wickham is not regarded as a resident in South Africa because he failed to meet Requirement 2 of the requirements of the physical presence test. c. Wickham is not regarded as a resident in South Africa because he failed to meet Requirement 1 of the requirements of the physical presence test. d. Wickham is regarded a resident in South Africa because he meets all the requirements of the physical presence test. Question 3 Not yet answered Marked out of 1.00 Flag question Question text Achilles is 34 years old. During the current year of assessment, he entered into an agreement for his business that gave him the right to purchase stationery for R28 000. This stationery normally costs R30 000. Achilles exercised the option during the current year of assessment. YOU ARE REQUIRED to determine how much of the expense in terms of the general deduction formula can Achilles claim? Select one: a. R30 000 – The stationery is an expenditure actually incurred in the production of income that is not capital in nature. Achilles can claim the full normal price. b. R28 000 – The stationery is an expenditure actually incurred in the production of income that is not capital in nature. He can only claim the purchase price. c. R2 000 – Achilles can only claim the difference between the normal price and the agreed upon price because he only entered into an agreement that gave him the right to purchase stationery and has exercised this option. d. R0 - The stationery is not an expense that has actually been incurred in the production of income. Question 4 Not yet answered Marked out of 1.00 Flag question Question text Ava is 22 years old. She received the following interest income during the current year of assessment: interest received from South African bank of R13 000, interest received from a Tax-free savings account of R12 100, and interest received from a foreign bank account of R18 800. YOU ARE REQUIRED to determine the total amount which will be exempt when determining Ava’s taxable income for the current year of assessment. Select one: a. R43 900 b. R20 100 c. R30 900 d. R25 100 Question 5 Not yet answered Marked out of 1.00 Flag question Question text Colin is 65 years old. He is married to Rebecca. Rebecca is 55 years old. During the current year of assessment Colin earned the following income:  Salary from employer of R835 000  Interest on savings account with local bank of R19 650  Interest on a tax-free investment account with a South African bank of R3 000  Dividends from a South African company of R12 000 During the current year of assessment Rebecca earned the following income:  Local dividends of R60 000 Colin’s Employees’ tax deducted from his salary is R223 328. Colin and Rebecca are married out of community of property. YOU ARE REQUIRED to calculate Colin’s gross income for the current year of assessment. Select one: a. R869 650 b. R882 325 c. R488 488 d. R60 000 Gift Komalo is 44 years old and married in community of property with Jeff Komalo who is 46 years old. Jeff earned the following investment income in the current year of assessment:  Local Dividend of R17 000  Interest received from a South African investment of R67 000 Jeff Komalo only earned R20 000 local interest in the current year of assessment. You may assume Gift did not have any income for the current year of assessment. YOU ARE REQUIRED to determine Gift's gross income for the current year of assessment. Select one: a. R20 000 b. R52 000 c. R104 000 d. R84 000 Question 7 Not yet answered Marked out of 1.00 Flag question Question text Amelia is 68 years old. He received interest income from South African bank of R28 000, local dividend from a JSE listed company of R20 000 and interest from a tax-free savings account of R12 000. YOU ARE REQUIRED to determine the total amount which will be exempt (include tax-free investment in your answer) when determining the Amelia’s taxable income for the current year of assessment. Select one: a. R66 500 b. R48 000 c. R60 000 d. R5 500 Question 8 Not yet answered Marked out of 1.00 Flag question Question text Ava is 33 years old and married in community of property with Adam, who is 35 years old. During the current year of assessment, Ava earned interest from a South African bank of R55,000, interest from a tax-free savings account of R44,100, and interest from a foreign bank account of R58,000. Adam received local dividends of R11,000. YOU ARE REQUIRED to calculate how much will be exempt (including tax-free investment) from Ava’s taxable income. a. R51 350 b. R84 050 c. R110 100 d. R67 900 Question 9 Not yet answered Marked out of 1.00 Flag question Question text Oscar is 48 years old. He is married to Oliver. Oliver is 38 years old. During the current year of assessment Oscar earned interest from a tax-free investment of R40 000 and foreign interest of R40 000. Oliver did not have any income during the current year of assessment. Oscar and Oliver are married out of community of property. YOU ARE REQUIRED to determine Oscar’s taxable income for the current year of assessment. a. R20 000 b. R40 000 c. R0 d. R80 000 Question 10 Not yet answered Marked out of 1.00 Flag question Question text Bosi Moyes is 79 years old. He is married in community of property to Beauty Moyes. Beauty is 69 years old. Bosi received the following investment income during the current year of assessment:  Interest received from South African bank of R48 000  Interest received from a South African’s tax-free savings account of R22 000  Interest received from a foreign bank account of R5 800 YOU ARE REQUIRED to determine the total amount that will be exempt from Beatuy's taxable income during the current year of assessment. You can assume that Beauty did not earn any income during the current year of assessment. Select one: a. R34 800 b. R0 c. R56 500 d. R35 000 Question 11 Not yet answered Marked out of 1.00 Flag question Question text Celeste has her own business at home and, due to all the load-shedding and cable theft recently, she decided to purchase a generator for R15 000 so that she can continue to make craft items when the electricity goes off. Without the generator she would not be earning any income on the days that she does not have any power. YOU ARE REQUIRED to identify the incorrect statement regarding the purchase of the generator and its deductibility. a. The generator will create an enduring benefit. b. The expense of purchasing the generator is part of the capital structure of the business. c. The expenditure is capital in nature. d. The expense is deductible in terms of the general deduction formula. Question 12 Not yet answered Marked out of 1.00 Flag question Question text Elizabeth is 40 years old. She is a salaried person. During the current year of assessment, she paid income protection premiums of R2 000, She contributed towards a retirement fund for R7 000, she bought groceries of R6 000, and made a donation to a public benefit organisation of R4 000. Elizabeth received the section 18A receipt. YOU ARE REQUIRED to determine the total amount that will be allowed as deductions in the calculation of her taxable income? (Assume that none of the allowable deductions are subject to any limitations, therefore the full amount would be deductible). Select one: a. R9 000 b. R13 000 c. R19 000 d. R11 000 Question 13 Not yet answered Marked out of 1.00 Flag question Question text Pabs Mashile, a 38-year-old unemployed South African resident. During the current year of assessment, he received the following investment income (it arose from an inheritance he received):  South African dividends of R35 000  Foreign dividends of R120 000 (the foreign entity is listed on the Johannesburg Securities Exchange)  Interest on a South African bank account of R50 000. YOU ARE REQUIRED to determine his taxable income for the current year of assessment. Select one: a. R50 000 b. R79 533 c. R0 d. R26 200 Question 14 Not yet answered Marked out of 1.00 Flag question Question text Which statement is correct about income received by an individual: Select one: a. Income included in gross income, but exempt will be taxed. b. Income included in gross income and not exempt will be taxed. c. Income that is exempt must be taxed. d. Income may be partially exempt. Question 15 Not yet answered Marked out of 1.00 Flag question Question text Jessica has a holiday home she normally rents it out to third parties for R5 000 a day. During the current year she allowed her best friend to stay there for two days at a discounted rate of R3 000 per day. In relation to this transaction and considering the gross income definition what is the total amount received in cash or otherwise that she needs to include in her Gross income: Select one: a. R10 000 b. R3 000 c. R6 000 1