MASOMERA DEAN D

R152059Q HONORS DEGREE IN ACCOUNTING 4.2

AC 415 ASSIGNMENT

MR KAPESA

Details Bulls Cows Oxen Heifers Steers Trollies Cattle Total

Opening Stock 5 90 40 80 30 30 90
Birth 70
Purchases 1 12
Promotions in 60 20 30 33
Total in 6 162 60 110 30 63 170 501

Sales (2) (45) (15) (12)

Death (5) (10)
Rations
Promotions out (60) (20) (63)
Total out (2) (45) (15) (60) (12) (25) (73) (232)
Closing Stock 4 117 45 50 18 38 97 369

FSV/PPV 14000 8000 7000 6000 2000 1000 500

Closing Stock ($) $56 000 $936 000 $315 000 $300 000 $36 000 $38 000 $48 500 $1 729 500

3b) Minimum Tax Payable for the year ended 31 December 2019

$ $
Sales (250 000 + 650 000) 900 000
Closing Stock 1 729 500
 2 629 500
Less allowable Deduction 1 685 000
Opening Stock 22 500
Capital Allowances: Toyota Hilux: ( 0.25*90 000) 25 000
Farm House (0.25*100 000) 80 000
Dam 180 000
Direct Livestock Expense
(1 992 500)
637 000
Less Enforced Sales relief (168 959)
Taxable Income 468 041
Tax rate (0.24*468 041) 112 330
Tax liability 112 330

Enforced sales Relief

Sales 650 000

Purchases(45*8000 + 1*14000) (374 000)
Livestock expenses (180 000*46/367) (22 561)
Taxable income 253 439
Tax relief (2/3*253 439) 168 959