Calculate the tax saving from an instalment sale agreement as applicable for a farming concern. Calculate...

  

Transcribed Image Text:

Calculate the tax saving from an instalment sale agreement as applicable for a farming concern. Calculate (a) to (k). Calculate the present value of the net capital outflow in the second table. Calculate (1) to (z). Please draw a table when answering, not only the letters. (25) Cost Price of truck: Deposit Payable Interest rate R2 500 000 9% 11% Date 28/02/08 28/02/09 28/02/10 28/02/11 28/02/12 Date 28/02/08 28/02/09 28/02/10 28/02/11 28/02/12 Deductible amount with regard to cost price of Truck (a) (g) Gross Capital outflow (1) (0) (s) (v) (x) Deductible financing cost (d) (h) Tax Saving (p) (y) Total deductible amount (b) (e) (i) Net Capital outflow (m) (9) (t) (w) Marginal rate of taxation 40% 40% 40% 40% 40% Discounting factor 0,8929 0,7972 0,7118 0,6355 Total tax savings (c) (f) (i) Present Value of net cap outflow (n) (r) (u) (z) Calculate the tax saving from an instalment sale agreement as applicable for a farming concern. Calculate (a) to (k). Calculate the present value of the net capital outflow in the second table. Calculate (1) to (z). Please draw a table when answering, not only the letters. (25) Cost Price of truck: Deposit Payable Interest rate R2 500 000 9% 11% Date 28/02/08 28/02/09 28/02/10 28/02/11 28/02/12 Date 28/02/08 28/02/09 28/02/10 28/02/11 28/02/12 Deductible amount with regard to cost price of Truck (a) (g) Gross Capital outflow (1) (0) (s) (v) (x) Deductible financing cost (d) (h) Tax Saving (p) (y) Total deductible amount (b) (e) (i) Net Capital outflow (m) (9) (t) (w) Marginal rate of taxation 40% 40% 40% 40% 40% Discounting factor 0,8929 0,7972 0,7118 0,6355 Total tax savings (c) (f) (i) Present Value of net cap outflow (n) (r) (u) (z)

Answer rating: 100% (QA)

To calculate the tax savings from an installment sale agreement for a farming concern we will use th... View the full answer