Isha Singh, a baker, works from her home. She uses her home kitchen that occupies 10% of the floor area of her home, to prepee the food for her catering business. Isha Singh has built an additional storeroom to store only the ingredients used for her trading activities. The interest incurred on funds borrowed by her to build this storeroom is R4 500 for the 2023 year of assessment. During the 2023 year of assessment she repaid R5 000 on the capital outstanding on these borrowed funds. Two thirds of Isha Singh's account at the local supermarket relates to her catering business. This account is always settled at the end of the month following the month when the purchases were made. Her account is R22 400 a month. The interest portion of Isha Singh's mortgage loan repayments on the mortgage bond on her home is R7 200 for the 2023 year of assessment. Isha Singh pays R13 600 a month to a full-time assistant in her catering business. She also paid her teenage son R6 000 for the 2023 year of assessment for assisting as a waiter at some functions. Had she hired a waiter, she would have had to pay him R8 000. The R6 000 paid to her teenage son during the 2023 year of assessment for his assistance as a waiter at certain income-earning functions is not deductible in the determination of her taxable income since it is considered to be excessive.

Select one:

O True

O False

Isha Singh, a baker, works from her home. She uses her home kitchen that occupies 10% of the floor area of her home, to prepare the food for her catering business. Isha Singh has buit an additional storeroom to store only the ingredients used for her trading activities. The interest incurred on funds borrowed by her to build this storeroom is 84500 for the 2023 year of assessment. During the 2023 year of assessment she repaid R5 000 on the capital outstanding on these borrowed funds. Two thirds of Isha Singh's account at the local supermarket relates to her catering business. This account is always settled at the end of the month following the month when the purchases were made. Her account is R22400 a month. The interest portion of Isha Singh's mortgage loan repayments on the mortgage bond on het home is R7 200 for the 2023 yeal of assessment. Isha Singh pays R13 600 a month to a full-time assistant in her catering business. She also paid her teenage 5on R6000 for the 2023 year of assessment for assisting as a waiter at some functions. Had she hired a waiter, she would have had to pay him R8 000. The R6 000 paid to her teenage son during the 2023 year of assessment for his assistance as a waiter at certain income earning functions is not deductible in the determination of her taxable income since it is considered to be excessive. Select one True False