Ntabeni is 50 years old. During the current year he sold his second home for R8 000 000. He bought this home 5 years ago for R5 000 000. The intention was to develop it to be an investment property, but they ended up using it as a holiday home. The estate agent’s commission on the sale was 5% of the selling price. He also did improvements amounting to R300 000. YOU ARE REQUIRED to determine the base cost of the of the property at the point of sale:a.R5 000 000b.R5 300 000c.R5 700 000d.R2 300 000

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

Edward bought his house for £230,000.He has just sold it for £301,300.Work out the percentage increase in price.

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

Question # 6Plant, measured using the cost model, had a carrying amount of Rs.80,000 on 31 December 2002cost Rs.100,000, accumulated depreciation Rs.20,000.All criteria for classification as a non-current asset held for sale were met on 1 January 2003The following values were established on this dateFair value C70 000 Costs to sell C5 000Required:Show the journal entries relating to the reclassification of the plant assuming that:a. On 30 June 2003 (6-months later) the fair value is Rs.60,000 and expected costs to sellwas Rs.3,000b. On 30 June 2003 (6-months later) the fair value is Rs.70,000 and expected costs to sellwas Rs.2,000

Contreras acquired his primary residence after 1 October 2001 for R900 000. During the current year of assessment, he sold it for R2 900 000. He used his primary residence 20% for trade purposes and claimed 15% of cost for income tax purposes. Which of the following statement is incorrect regarding the declaration of the sale of his primary residence in the income tax return?a.The capital gain attributable to the sale of the primary residence is R1600 000b.The capital gain attributable to trade is R400 000.c.The capital gain attributable to trade can be reduced by the annual exclusion of R40 000 available to natural persons.d.The primary residence exclusion that can be claimed R2 000 000.