3.1 Marigold Ltd is a manufacturer of garden tools and products.
It disposed of a plant on 29 February 2016 for R5 244
000. The plant was purchased (previously used) on 1 November 2014 from another manufacturing company for R2 394
000. The section 12 C allowance rule will apply.
All amounts include VAT and all parties are VAT vendors.
The company’s year of assessment is the last day of February.
3.1.1 Calculate the recoupment for the year of assessment 29 February 2016. (4 marks)
3.1.2 Calculate the taxable capital gain for the year of assessment 29 February 2016.
000. The plant was purchased (previously used) on 1 November 2014 from another manufacturing company for R2 394
000. The section 12 C allowance rule will apply.
All amounts include VAT and all parties are VAT vendors.
The company’s year of assessment is the last day of February.
3.1.1 Calculate the recoupment for the year of assessment 29 February 2016. (4 marks)
3.1.2 Calculate the taxable capital gain for the year of assessment 29 February 2016.
