Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Capital Bank Limited is a resident of South Africa with a 30 June year-end. Capital Bank Limited invested R8 800000 in a R10 000000 (face
Capital Bank Limited is a resident of South Africa with a 30 June year-end. Capital Bank Limited invested R8 800000 in a R10 000000 (face value) financial instrument with a term of two years at a discount of R1 200000 on 1 January 2022. Local interest is receivable six-monthly, determined at 2% of its face value. This financial instrument's maturity date is 31 December 2023 when Capital Bank Limited will receive its face value of R10000000. The cash flows relating to this investment made by Capital Bank Limited are as follows: The R2 000000 represents a yield to maturity on a six-monthly accrual period of 5,417% REQUIRED: Calculate the interest that accrued to Capital Bank Limited in accordance with section 24J for its 2022,2023 , and 2024 years of assessment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started