SLK (Pty) Ltd has a net income from operations (before the sale of the capital assets) of R400 000. The company broughtforward an assessed capital loss of R540 000 from the previous year of assessment. The company's financial year-end31 December 2018.The following information pertains to the disposal of SLK (Pty) Ltď's capital assets:• Office buildingSLK (Pty) Ltd sold an office building on 30 December 2018 for R4 500 000. This office building was acquired on 30December 2005 for R3 200 000. In addition to the acquisition cost, a transfer cost of R72 000 was paid to the lawyer.The following costs were incurred while the company owned the asset:R740 000ImprovementsInterest paid on mortgage bond (deducted for normal tax purposes)Property tax (deducted for normal tax purposes)890 000350 0001980 000The building did not qualify for section 13quin allowance as it was erected before 1 April 2007.Manufacturing assetSLK (Pty) Ltd bought a used manufacturing asset on 1 October 2000 for R500 000. The asset qualified for the section12C allowance at 20%. On 1 November 2016, the company made improvements to the asset at a total cost of R800000. These improvements qualify for their own allowance at 20% in terms of section 12C. The asset was sold on 30September 2018 for R2 500 000. The total base cost of this asset at the time of disposal was R345 641.• Delivery vehicleDuring the 2018 financial year, SLK (Pty) Ltd realised a capital loss of R360 000 from the disposal of a delivery vehicle.Required:Calculate taxable income of SLK (Pty) Ltd for the current year of assessment.NB: VAT implications for this question must be ignored.Round off your calculations to the nearest whole number. APPENDICESAppendix 1: Turnover tax rates (1 March 2018 - 28 February 2019)Taxable turnover (R)0- 335 000335 001 - 500 000500 001 - 750 000750 001 and aboveRate of tax0%1% of the amount above R335 000R1650 + 2% of the amount above R500 000R6 650 + 3% of the amount above R750 000

Taxable income is defined as the portion of gross income over which the tax liability is charged. It…

Answered: Calculate taxable income of SLK (Pty)

Business

Accounting

Calculate taxable income of SLK (Pty)

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 31P

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At 31 July 20X6, Hellos International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year 31 July 20X7 but acquired an asset at a cost of $79,000 on 1 January 20X7. Hellos International depreciates non-current assets at a rate of 25% per annum. What is the company’s depreciation charge for the year to 31 July 20X7 using: The Straight-Line Method The Reducing Balance Method Assume that depreciation is charged from the first year of acquisition.
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Day SA acquired the following assets in January 2017. Equipment, estimated service life, 5 years; residual value, P15,000 P465,000 Building, estimated service life, 30 years; no residual value P780,000 The equipment has been depreciated using the sum-of-the-years'-digits method for the first 3 years for financial reporting purposes. In 2020, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or residual value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated residual value. The building is depreciated on the straight-line method. Required Prepare the journal entry to record depreciation expense for the equipment in 2020. Prepare the journal entry to record depreciation expense for the building in 2020. (Round to nearest peso.)
During the year ended 30 June 2023, CoCo Berhad had the following transactions: a. In July 2022, CoCo Berhad acquired a building for RM800, 000 with an estimated useful life of 20 years. It is the company's policy to depreciate the building on a straight line basis. On 30 June 2023, the building had been revalued to RM950, 000. It is the company's policy to provide a full year's depreciation in the year of purchase and none in the year of disposal. For tax purposes, initial allowance of 10% and annual allowance of 3% are given for such buildings. The company has no intention to dispose the revalued building. b. CoCo Berhad had trade receivables of RM1, 500, 000 and an allowance for doubtful debts of 10% has been made for the year. Income tax rate is 25% for the year ended 30 June 2023. Required: Calculate the deferred tax asset or deferred tax liabilities as at 30 June 2023 arising from the above transactions. Please step by step answer
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