ANNEXURE E: FORMATIVE ASSESSMENT $1($FA$1)$

Question $3$

$[18$ marks$]$

Bloem Trading is a start$-$up sole trader, owned by Temba Bloem in Cape Town, Temba has approached you to assist him with his tax affairs. Please see below transactions that have been provided to you for the year ended $29$ February $2024$:

Bloem spent R$12500$ on billboards post to advertise his business.

Bloem paid R$7500$ for designs and R$10000$ for patents.

Temba Bloem had a remuneration of R$230000$ and taxable income of R$320000$ for the year of assessment. Temba Bloem contributed $10\%$ of remuneration to his retirement fund.

Required

Calculate the total deductible expenditure that Bloem Trading may claim for the current year of assessment. NB: SHOW ALL YOUR CALCULATIONS. Please refer to the relevant sections of the Act and provide reasons for items with no tax impact. Indicate with a R NiI $($RO$)$ where no amount is deducted

$(18$ marks$)$

$5$

HTAX$201-1-$Jul$-$Dec$-2024-$FA$1-$AM$-$V$2-15072024$