, TAX3701 ASSIGNMENT 2 SEMESTER 1 2026 SOLUTIONS
1. GROSS INCOME
Amount
Description Treatment Reason
(R)
Revenue
Sales 27 789 261 Included
received/accrued
Less: Bad debt (liquidated Allowed as bad debt
(22 520) Deducted
client) (s11(i))
Fully taxable for
Interest (SA) 17 780 Included
companies
Local dividends 114 520 Excluded Exempt (s10(1)(k))
Foreign dividends 145 200 Included <10% shareholding
Total Gross Income = R27 929 721
2. COST OF SALES
Description Amount (R)
Opening stock 3 785 261
Purchases 15 125 187
Less: Closing stock (4 252 879)
Cost of Sales = R14 657 569
3. GROSS PROFIT
Description Amount (R)
Gross income 27 929 721
1. GROSS INCOME
Amount
Description Treatment Reason
(R)
Revenue
Sales 27 789 261 Included
received/accrued
Less: Bad debt (liquidated Allowed as bad debt
(22 520) Deducted
client) (s11(i))
Fully taxable for
Interest (SA) 17 780 Included
companies
Local dividends 114 520 Excluded Exempt (s10(1)(k))
Foreign dividends 145 200 Included <10% shareholding
Total Gross Income = R27 929 721
2. COST OF SALES
Description Amount (R)
Opening stock 3 785 261
Purchases 15 125 187
Less: Closing stock (4 252 879)
Cost of Sales = R14 657 569
3. GROSS PROFIT
Description Amount (R)
Gross income 27 929 721
