QUESTION 2

1. Plant was purchased for R20 000 on 2 Jan 2021.

Equipment was purchased for R25 000 on 2 January 2022.

Land was purchased for R200 000 on 2 January 2016

Land is not depreciated and allowed by SARS

Depreciation W&T

Plant 10% 20%

Equipment 20% 30%

1. Interest receivable on 31 December 2021 is R5 000
2. Dividend of R 2500 is receivable from wholly owned subsidiary at 31 December 2022

Calculate the deferred tax for the year ended 31 December 2021 and 2022

CARRYING AMOUNTTAX BASE TEMPORARY DIFF DTA/DTL

Show all the workings in the allocated table.