Jacob Taruvinga (age 57), a SA tax resident, acquired a capital asset on 1 January 1994 for R160 000. He disposed of the asset on 9 December 2015 for R270 000. You are his tax specialist and he has asked for your advice on the tax implications of this transaction. Jacob completed part of the calculation, but is not confident about his provisional calculations: Jacob's workings of TAB method: B = R160 000 ; P = R270 000 ; N = 7 ; T = 15 Evaluate Jacob's workings?

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To evaluate Jacobs TAB method workings we need to understand what each variable represents B Base co... View the full answer