TAX2601 LATEST EXAM PACK

Tax2601 exam pack Exam tips, solutions AND explained NOTES Disclaimer The information contained in this document is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Overcomers Tutorials (Pty) Ltd. The opinions expressed are in good faith and while every care has been taken in preparing this document, Overcomers makes no representations and gives no warranties of whatever nature in respect of this document, including but not limited to the accuracy or completeness of any information, facts and/or opinions contained therein. Overcomers Tutorials (Pty) Ltd, its subsidiaries, the directors, employees and agents cannot be held liable for the use of and reliance of the opinions, estimates, forecasts and findings in this document. S - The study-notes marketplace Downloaded by: biancakrugerbusiness | Distribution of this document is illegal S - The study-notes marketplace Overcomers tutorials Cell: Email: Overcomers Tutorials TABLE OF CONTENTS  NOVEMBER 2017  MAY/ JUNE 2017  NOVEMBER 2016  MAY/JUNE 2016  MAY/JUNE 2015  NOVEMBER 2015  MAY/JUNE 2014  NOVEMBER 2014  MAY/JUNE 2013  NOVEMBER 2013 Downloaded by: biancakrugerbusiness | Distribution of this document is illegal S - The study-notes marketplace Overcomers tutorials Cell: Email: Overcomers Tutorials OCTOBER/NOVEMBER 2017 (Q1) SMILEY (PTY) LTD Calculation of taxable income for the year of assessment ending 31 March 2017 R -Cash sales 375 000 -Credit sales 4 600 000 -Purchases of inventory 2 940 000 -Local dividends (exempt) nil -Opening inventory (880 000) -Closing inventory 620 000 -Salaries and wages (480 000) -Pension fund contributions (48 000) -Wear and tear: manufacturing machine AB (section 12E, deducted in full) (325 000) -Delivery vehicle (section 12E, 30% x 70 000) no apportionment (21 000) -Manufacturing building (section 13(1) erected after 1 January 1989, 5% is used, 5% x 1 700 000) (85 000) -manufacturing machine BC, claimed in full in 2014 year of assessment (section 12E) nil -Recoupment on manufacturing machine BC Proceeds 30 000 Tax value (nil) Cost 120 000 Accumulated wear and tear (120 000) 30 000 -Bad debts (9 000) -Doubtful debt allowance, 2016 year of assessment 17 000 -Doubtful debt allowance, 2017 year of assessment (25% x 84 000) (21 000) -Renewal of trademark (9 000) -Acquisition of trademark (not allowed as deduction) nil -Registration of trademark (65 000) -Legal costs (prohibited, non-trade expenditure) nil -Advertising costs (2 500) TAXABLE INCOME BEFORE DONATIONS 756 500 -Donation, 100 000 (section 18A) limited to 10% of 756 500 (75 650) (75 650) TOTAL TAXABLE INCOME 680 850 Income tax liability = 59 150