Tom Bambo is a cattle farmer and he provides you with the following information in respect...

  

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Tom Bambo is a cattle farmer and he provides you with the following information in respect of his farming activities for the tax year ended 30 June 2015. P Sales of cattle 3,372,095 Sales of meat 822,545 Proceeds on sale of farming equipment 28,000 Purchases of cattle 1,997,510 534,430 159,522 Purchases of feed Transport and selling costs Expenditure on building a dam 130,040 Wages Fencing Purchase of truck Administrative expenses 208,982 118,863 168,000 105,577 The stock of cattle was calculated as follows: No. Opening stock Purchased 4,014 2,279 Natural increase 180 Deaths (260) Sales (4039) Personal consumption (32) Closing stock 2,142 The standard tax value for cattle is P430 per head. The market value is P1 120 per head. The details of the tax written down values of the assets at 1 July 2014 are: Cost Allowances Tax value P Motor vehicles 539,000 114,975 424,025 Farming equipment The cost of the farming equipment that was sold was P91, 700 and the tax value was P61, 228,900 101,500 127,400 250 Tom's tax loss brought forward from the 2014 tax year is P75, 309. Tom has other taxable income for the year ending 30 June 2015 amounting to P120, 680. Required: In respect of Tom Bamboo for the tax year ended 30 June 2015 calculate: (a) His chargeable income from farming; (11 marks) (b) His taxable income; (2 marks) (c) The tax loss to be carried forward. (2 marks) Tom Bambo is a cattle farmer and he provides you with the following information in respect of his farming activities for the tax year ended 30 June 2015. P Sales of cattle 3,372,095 Sales of meat 822,545 Proceeds on sale of farming equipment 28,000 Purchases of cattle 1,997,510 534,430 159,522 Purchases of feed Transport and selling costs Expenditure on building a dam 130,040 Wages Fencing Purchase of truck Administrative expenses 208,982 118,863 168,000 105,577 The stock of cattle was calculated as follows: No. Opening stock Purchased 4,014 2,279 Natural increase 180 Deaths (260) Sales (4039) Personal consumption (32) Closing stock 2,142 The standard tax value for cattle is P430 per head. The market value is P1 120 per head. The details of the tax written down values of the assets at 1 July 2014 are: Cost Allowances Tax value P Motor vehicles 539,000 114,975 424,025 Farming equipment The cost of the farming equipment that was sold was P91, 700 and the tax value was P61, 228,900 101,500 127,400 250 Tom's tax loss brought forward from the 2014 tax year is P75, 309. Tom has other taxable income for the year ending 30 June 2015 amounting to P120, 680. Required: In respect of Tom Bamboo for the tax year ended 30 June 2015 calculate: (a) His chargeable income from farming; (11 marks) (b) His taxable income; (2 marks) (c) The tax loss to be carried forward. (2 marks)

Answer rating: 100% (QA)

a Sale of cattle 3372095 Sale of meat 822545 Total Income 4194640 Purchase of cattle 1997510 Purchas... View the full answer