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Good day Please can an expert assist me with the below question. Thank you Cllent 2 Berry (Pty) Lid. Is an Australlan subsidiary of Frult
Good day
Please can an expert assist me with the below question.
Thank you
Cllent 2 Berry (Pty) Lid. Is an Australlan subsidiary of Frult Ltd., a South African company. The Group of companles speciallses in the production of healthy food products. Due to the materlal increase in demand for healthler food options Berry (Pty) Lid. has decided to expand its production department. To fund this expansion, Frult Ltd. agreed to lend 94 HTAX332-1-Jul-Dec 2022-FA2-V3-ELK-28062022 ANNEXURE I: FORMATIVE ASSESSMENT 2 450000 Australian dollars on 1 March 2021 to Berry (Pty) Ltd. The loan is repaid on 31 January 2024. The loan is not hedged. Fruit Ltd. has a June year-end. Relevant ruling exchange rates were as follows: REQUIRED: 2.1. With regards to Client 1 , calculate the foreign exchange differences which arise from the transactions for the client's 2022 year of assessment. (21 marks) 2.2. With regards to Client 2, discuss the effect of the foreign transaction on Fruit Ltd.'s taxable income seperately for the 2021, 2022, 2023 and 2024 years of assessment. Support your answer with calculations where necessary. Cllent 2 Berry (Pty) Lid. Is an Australlan subsidiary of Frult Ltd., a South African company. The Group of companles speciallses in the production of healthy food products. Due to the materlal increase in demand for healthler food options Berry (Pty) Lid. has decided to expand its production department. To fund this expansion, Frult Ltd. agreed to lend 94 HTAX332-1-Jul-Dec 2022-FA2-V3-ELK-28062022 ANNEXURE I: FORMATIVE ASSESSMENT 2 450000 Australian dollars on 1 March 2021 to Berry (Pty) Ltd. The loan is repaid on 31 January 2024. The loan is not hedged. Fruit Ltd. has a June year-end. Relevant ruling exchange rates were as follows: REQUIRED: 2.1. With regards to Client 1 , calculate the foreign exchange differences which arise from the transactions for the client's 2022 year of assessment. (21 marks) 2.2. With regards to Client 2, discuss the effect of the foreign transaction on Fruit Ltd.'s taxable income seperately for the 2021, 2022, 2023 and 2024 years of assessment. Support your answer with calculations where necessaryStep by Step Solution
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