Question 4 [12 Marks] Study the following case studies independently and answer the question that follows. I. Chris, aged 55, runs a sole trader business and recently decided to retire early and sell his business to spend time with his grandkids. He wanted to sell his business for a one-million-rand lump sum and could not find a willing buyer to pay this amount. He sold his business to a friend Lydia, who paid him a cash amount of R400 000 and undertook to settle the balance by paying him R10 000 per month for the rest of his life. II. III. Alvis is a car dealer with 20 demo cars in his showroom. The arrival of new models required space, and Alvis decided to sell 4 of his demo cars at a discounted price of R200 000 for each vehicle. All four cars were sold during the same tax period. Gibson loves dogs and purchased 2 German Shepherd dogs in July 2017 for R6 000 each. In September 2022, the dogs had eight puppets. Gibson decided to keep two puppets and sold the other six for R32 000 in total during the same tax period. Siya, who is a financial broker, was an owner of a restaurant bar in the city of Johannesburg. A large restaurant chain approached him to sell his restaurant, and he accepted the offer. The deal was for R800 000, and the sale price was made of trading stock worth R250 000, fixed assets valued at R300 000, and goodwill of R250 000. In terms of the sale agreement, the amounts for fixed assets and trading stock were to be paid in cash on signing, while goodwill will be paid in annual instalments of R35 000 for the rest of his life. Required: Examine the above scenarios with reference to the gross income definition, and advise which amounts will be included or excluded as part of gross income. IV. Anne, who was a guesthouse manager in Cape Town, inherited a house on the death of her aunt. The house is located in Durban, and she has no wish to relocate and live in Durban. She decided to list the property for sale, and much to her delight, the property was sold within a week. She received R1 000 000 from the sale of the house. V. HIT1181-Jul-Dec2023-FA1-AM-V3-10072023