Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 1 ( 1 9 marks ) Buy - a - lot ( Pty ) Ltd ( a South African company ) sells various products
QUESTION marks
Buyalot Pty Ltd a South African company sells various products online and delivers for free. Its year of assessment ends on March and it operates from offices and warehouses that are located in Johannesburg. Customers must pay the full purchase price of the product on the date that the online order is submitted. The company's terms and conditions state that if a customer is not satisfied or does not like the product after receipt of the product, heshe can return the product within two weeks after the delivery date and Buyalot Pty Ltd will provide a full refund of the purchase price.
Mrs Khumalo ordered a pair of blue high heel shoes on March and made an EFT electronic fund transfer payment of R on the same date. The shoes were delivered on March Mrs Khumalo realised that the heel was higher than what she expected and decided to return the shoes. She successfully logged a return request online on March Buyalot Pty Ltd processed the return on April and paid the R into Mrs Khumalo's bank account on the same date.
Buyalot Pty Ltd made a provision for product returns of R on March
tableREQUIRED,MARIatableDiscuss whether the R sale of the blue high heel shoes will constitute grossincome for Buyalot Pty Ltd for the year of assessment. List the requirementsof the gross income definition and briefly discuss each requirement using the giveninformation at hand.Make a brief reference to relevant case law to strengthen your argument.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started