Larry King sold his home in Sandton for R5 million. The base cost of the asset was calculated at R1 750 000. He occupied 20% of his home to run his business from the premise. Calculate Larry’s taxable gain for the current year of assessment.a.R 650 000b.R 484 000c.R 3 250 000d.R 224 000

King Sporting Goods reports net income of $100,000, net sales of $500,000, and average assets of $1,000,000. The profit margin is:Multiple Choice50%.20%.5 times.10%.

13. Smithson Co purchased a new building with a 50‐year life for $10 million on 1 January 20X3. On 30 June 20X5, Smithson Co moved out of the building and rented it out to third parties on a short‐term lease. Smithson Co uses the fair value model for investment properties. At 30 June 20X5 the fair value of the property was $11 million and at 31 December 20X5 it was $11.5 million. What is the total net amount to be recorded in the statement of profit or loss in respect of the office for the year ended 31 December 20X5? A Net income $400,000 B Net income $500,000 C Net income $1,900,000 D Net income $2,000,000 14. On 1 October 20X3, Hoy had $2.5 million of equity shares of 50 cents each in issue. No new shares were issued during the year ended 30 September 20X4, but on that date there were outstanding share options to purchase 2 million equity shares at $1.20 each. The average market value of Hoy’s equity shares during the year was $3 per share. Hoy’s profit after tax for the year ended 30 September 20X4 was $1,550,000. What is Hoy’s diluted earnings per share for the year ended 30 September 20X4? A 25.0¢ B 31.0¢ C 26.7¢ D 22.1¢

he projected income is based on an estimated annual property revenue of $17,875,000. If the revenue is increased to $22,000,000 (assuming the other expense percentages stay constant), what would be the new valuation of the company?

Jennings bought an asset before 1 October 2001. During current year of assessment, she sold the asset for R500 000. She did not keep an accurate record of the expenditure or the cost of the asset. The Market Value of the asset on 1 October 2001 was R600 000. YOU ARE REQUIRED to determine the base cost of the asset.a.The base cost is limited to the Proceeds of R500 000 because the Proceeds are less than the Market Value.b.R200 000, the base cost is 20% of the (Proceeds less cost incurred after 1 October 2001) plus expenditure incurred after 1 October 2001. This is also known as an anti-avoidance measure.c.The base cost is R600 000, the Market Value of the asset on 1 October 2001. Jennings can use the Market Value even if it creates a loss.d.The base cost is R100 000 which is the Market Value of the asset on 1 October 2001 less Proceeds of R500 000 as the sale of this asset cannot create a loss.

Shelton Co. purchased a parcel of land six years ago for $869,500. At that time, the firm invested $141,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $52,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $921,000. What value should be included in the initial cost of the warehouse project for the use of this land?