Mr. Prime Shaapopi CA (SA) (NAM) for the year of assessment ending 28 February 2020. Profit from
Question:
Mr. Prime Shaapopi CA (SA) (NAM) for the year of assessment ending 28 February 2020.
Profit from business ................................................500 000
Profit from branch of business in Zimbabwe .......100 000
Director’s fees ..............................................................8 000
Insurance pay out for loss of profits ......................80 000
Profit on sale of truck ............................................120 000
Cost price ............................................................300 000
Tax value .............................................................200 000
Selling price ..........................................................320 000
Gain from Unit Trust ................................................80 000
Interest from bank .........................................................400
Interest from subscription shares ................................800
Farming subsidy on soil erosion ..............................20 000
Lease premium received ...........................................10 000
Lump sum on retirement from pension fund .......100 000
Retrenchment benefit from employers ..................80 000
Goodwill received ......................................................120 000
You are required to calculate the income of Mr. Prime Shaapopi CA (SA) (NAM) for the year of assessment ending 28 February 2020.
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen