TAX2601 Assignment 2 Semester 1 & 2 2019

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SUGGESTED SOLUTION: ASSIGNMENT 2/2/2019 QUESTION 1 (25 marks, 30 minutes) Calculate the income tax liability of Marble Robots (Pty) Ltd for the year of assessment ended 31 March 2019. R Taxable ... income 2 486 000 New crane {(R600 000 + R40 000) x 100%} (640 000) (2) Old crane: Recoupment (R20 000 - Rnil) 20 000 (1) Repairs Recovered from insurer – prohibited (s23(c)) Nil (1) Rent expense (R20 000 x 9) (180 000) (1) Commercial buildings (R4 800 000 x 5%) (240 000) (1) Furniture and fittings (R80 000 x 50%) (40 000) (1) Upfront payment received 200 000 (1) Bonus (20 000) (1) Bad debts (128 000) (1) Electricity bill (8 500) (1) Motor vehicle allowance (R150 000 x 30%) (45 000) (1) Truck Cost R210 000 2019 allowance (50%) (R105 000) (105 000) (1) Tax value R105 000 Less: Proceeds (R80 000) (1) Scrapping allowance R25 000 (25 000) (1)..........................CONTINUED [Show More]

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