Question
Kohler determines that three office desks, six chairs, and two laptops will be used 100% to make taxable supplies. The value of these assets amounts
Kohler determines that three office desks, six chairs, and two laptops will be used 100% to make taxable supplies. The value of these assets amounts to R70 000. Included in the R500 000 purchase price is a motor car to the value of R95 000 and a coffee machine to the value of R10 000. Except for the assets specifically mentioned, Kohler estimates that the rest of the assets will be used 65% for the making of taxable supplies. It's over CC used the chairs, desks, and laptops 70% for the purposes of making non-taxable supplies. The value of the above-mentioned items constitutes R70 000 of the R500 000 purchase price. The original cost of these items for Its over CC amounted to R114 000 (VAT inclusive). All the other items relating to the acquired concern were used 100% by Its over CC for the purposes of making taxable supplies.
Calculate all the VAT implications of the above transaction (use a 15% VAT rate).
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