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 3 250 000c.R 224 000d.R 484 000

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.

During the current year of assessment Fellen sold her primary residence for R7 500 000. It was purchased on 1 June 2006 for R3 780 000. She incurred commission costs on the sale of property of R67 500. YOU ARE REQUIRED to calculate the taxable capital gain to be included in Fellen’s taxable income because of the sale of the primary residence. You may assume that she did not sell any other capital asset.a.R1 652 500b.R1 612 500c.R3 652 500d.R645 000