Issue 2: Capital allowances on the following fixed assets must still be calculated: Heavy-duty truck purchased new for R550 000 and brought into use on 1 October 2021. Manufacturing machine purchased second-hand for R400 000 and brought into use on 1 February 2023. Moving and installation costs of R10 000 were incurred on 20 January 2023 to move the machinery from the sellers premises. Delivery vehicle purchased new for R300 000 and brought into use on 2 January 2020. REQUIRED Calculate the capital allowances that JCF (Pty) Ltd can deduct in the taxable income calculation for the year of assessment ending 28 February 2023. Show all calculations. [4 marks]

Issue 3:

A donation of R50 000 cash was made by JCF to Tshwane Child Welfare Organization (a registered public benefit organization). The accountant has not dealt with this donation yet and needs to finalized the taxable income calculation.

REQUIRED

a) State the requirement for JCF (Pty) Ltd to be able to claim a deduction in respect of the donation in the taxable income calculation for the 2023 year of assessment?[1mark]

b) Assume JCF (Pty) Ltd is allowed to claim a donation deduction for tax purposes and the taxable income is correctly calculated to be R589 000 before this deduction. Calculate the donations tax deduction JCF (Pty) Ltd can claim in their 2023 taxable income calculation.[3 marks]

c) Calculate the income tax liability of JCF (Pty) Ltd for the 28 February 2023 year of assessment, by using the taxable income amount after taking the donation deduction into account. [4 marks]