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Calculate the current tax expense for the year ended 3 0 April 2 0 2 4 . Extract of information from the Statement of Profit

Calculate the current tax expense for the year ended 30 April 2024.
Extract of information from the Statement of Profit and Loss and Other Comprehensive Income for the year ended 30 April 2024:
[Revenue,3260000],[Fair value gain on investment property,60000],[Cost of sales,,1645000,],[Administration expenses,109100,],[Salaries and wages,,32000,],[Warranty costs,4,500,],
Additional information:
The investment property had a fair value of R1200000 on 30 April 2023. The investment property was initially purchased for R900000 and is measured on the fair value model in terms of IAS 40 Investment properties.
Administration expenses include, amongst other items, the following:
A penalty of R5000 for late submission of VAT returns to the South African Revenue Services.
These are prohibited as a deduction for income tax purposes.
Water and electricity expenses of R11200. These are deductible at the earlier of payment or accrual.
The movement in the allowance for credit losses account is included in administration expenses. Trade receivables amounted to R540000 at 30 April 2023, and the allowance for credit losses was R170900 at 30 April 2023 and R228000 at 30 April 2024. In accordance with section 11(j) of the Income Tax Act, SARS allows 25% of the loss allowance on trade receivables as a deduction for income tax purposes. Bad debts of R82000 were written off during the current year.
The depreciation expense relates to the following assets:
Equipment
All equipment was originally purchased on 1 February 2022 at a cost of R620000. The equipment is depreciated on the straight-line method over a useful life of 5 years with a residual value of R42000. SARS allows wear and tear at a rate of 25% per annum (not apportioned for part of a year). There have been no additions or disposals of equipment.
Vehicles
On 3 September 2023, a vehicle was sold for a cash amount of R170000. This vehicle had a carrying amount of R200000 and a tax base of R150000 on the date of sale. Depreciation of R60000 on all vehicles was correctly accounted for in the trial balance above, of which R15000 relates to the vehicle sold. SARS granted wear and tear allowances of R80000 on all vehicles for the current reporting period, including R30000 relating to the vehicle sold.
The carrying amount of all vehicles was correctly determined to be R480000 at
30 April 2023. The relevant tax base was R365000 on 30 April 2023.
The vehicles sold were not removed from the assets section in the statement of financial position (neither was the tax base of the sold vehicle removed from the tax bases.)
Harmony Innovations CC sells energy-efficient washing machines with a 3-month warranty which allows customers to return goods that have manufacturing defects for repairs. The warranty provision was correctly estimated to be R36400 on 30 April 2024. This was an increase from the provision of R28600 recognised for the year ended 30 April 2023. All warranty-related costs were correctly recognised in the warranty costs account. SARS allows warranty costs to be deducted when they are actually incurred (i.e. when goods are returned and repaired).
Harmony Innovations CC is in the process of developing an advanced smart thermostat system designed to optimise energy usage within residential and commercial buildings. R200000 was expensed as research costs in the previous year and R300000 development costs were capitalised on 1 November 2023. Development costs are amortised over 8 years to a nil residual.
SARS allows a 50/30/20 allowance on research and development costs. SARS makes no distinction between research and development costs.
Harmony Innovations CC is seeking to purchase an advanced energy-efficient HVAC (Heating, Ventilation, and Air Conditioning) system for its main office building in June 2024(the next financial year).
The total anticipated cost of the energy-efficient HVAC system, including VAT is R287500. The HVAC system has a useful life of 10 years for accounting purposes, whilst SARS will allow an allowance of 20% over 5 years. As an incentive to companies to invest in energy-efficient infrastructure and adopt sustainable practices within their operations, the tax allowances are calculated based on 120% of the initial cost of the HVAC system.
The balance on the deferred tax liability account amounted to R71206 as at 30 April 2023.
There are no other taxable or deductible temporary differences other than those listed above.
Profit before tax was correctly determined to be R2260435 for the financial year ended 30 April 2024.
A corporate tax rate of 27% and a capital gains inclusion rate of 80% are applicable.
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