Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. Question 2 (20 Marks) Castle black is an employee for Breweries Imitated, he had received a travel allowance from his employer amounting to R86

image text in transcribed

. Question 2 (20 Marks) Castle black is an employee for Breweries Imitated, he had received a travel allowance from his employer amounting to R86 000 for the current year of assessment. His car is used for business travel and private travel. He had purchased his vehicle a year ago for R350 000 (including a VAT). Castle travelled a total of 16 500 kilometres during the current year of assessment, of which 8 400 was for private use. It should be noted that Castle has also kept an accurate record of expenses that were incurred in respect of the car for the current year of assessment. The costs are as follows: Finance charges Maintenance cost Fuel cost Insurance premiums and licences fees R 47 800 9 500 12 400 2 350 Required: Calculate the taxable portion of the travel allowance received by Castle for the 2020 year of assessment. The table provided below should be used when making the relevant calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Probability And Statistics For Engineering And The Sciences

Authors: Jay L. Devore

9th Edition

1305251806, 978-1305251809

Students also viewed these Accounting questions