Meisie Planter is 50 years old, a widow, and a person with a disability (as defined in
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Question:
farms livestock and maize. Meisie Planter’s receipts, accruals and expenditure for the 2021 year of
assessment were as follows:
Sales – livestock 852 000
Sales – maize 1 966 000
Subsidy received from the Government to build a dam for maize farming 20 000
Bonus from a co-operative society for maize supplied to it 40 000
Grazing fees earned 50 000
Closing stock – livestock
standard value
market value
60 000
22 500 000
Opening stock –livestock
standard value
market value
36 000
13 500 000
Livestock purchased 540 000
Salaries – farm employees 1 450 000
Eradication of noxious plants in the maize fields 40 000
Purchase of irrigation pipes – maize farming 30 000
Purchase of new tractor on 1 May 2020 – maize farming 180 000
Cost of the erection of eight houses for farm employees at R72000 each (note 1) 576 000
Cost to build a dam 216 000
Notes:
1. One of Meisie Planter’s houses is occupied by the manager of her maize farm and his wife, who
is also a farm employee. The other seven houses are occupied by other farm employees.
2. Meisie Planter slaughtered three cows for her domestic consumption and four cows as rations
for her employees. She donated two cows to the local church for its fête. The standard value of
a cow is R40, its cost price is R9 000 and its market value is R15 000. Meisie Planter inherited
livestock from a late uncle during May 2020. The market value of this livestock was R600 000.
Its standard value is R1 600.
3. Meisie Planter’s farming capital development expenditure brought forward from the 2020 year of
assessment is R86 000.
YOU ARE REQUIRED TO determine Meisie Planter’s taxable income for the 2021 year of assessment.
Related Book For
Statistics For Engineering And The Sciences
ISBN: 9781498728850
6th Edition
Authors: William M. Mendenhall, Terry L. Sincich
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