Blake is 40 years old. During the current year of assessment, he sold his house for R630 000. included in the selling price is estate agent commission of R29 999 paid to Kukkor real estate, the estate agents who assisted him in selling his house. YOU ARE REQUIRED to determine the proceeds.a.R659 999b.R600 000c.R630 000d.R600 00
Question
Blake is 40 years old. During the current year of assessment, he sold his house for R630 000. included in the selling price is estate agent commission of R29 999 paid to Kukkor real estate, the estate agents who assisted him in selling his house. YOU ARE REQUIRED to determine the proceeds.a.R659 999b.R600 000c.R630 000d.R600 00
Solution
The proceeds from the sale of the house would be the selling price minus any costs associated with the sale. In this case, the cost associated with the sale is the estate agent commission of R29 999.
So, to calculate the proceeds, you would subtract the commission from the selling price:
R630 000 (selling price) - R29 999 (commission) = R600 001
So, the proceeds from the sale of the house would be R600 001. However, this option is not listed in the choices provided. The closest option to the correct answer would be (b) R600 000.
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