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Previous page Mr Winston entered into an agreement that gave him the right to purchase stationery for R12 000. This stationery normally costs R17 000.

Previous page Mr Winston entered into an agreement that gave him the right to purchase stationery for R12 000. This stationery normally costs R17 000. Mr Winston has not exercised the option by the end of the year of assessment. Mr Winston will not be able to deduct this amount because he did not consider the option during the current year of assessment and therefore he created a liability for himself.

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