question 5

Question 5 15 Marks - 27 minutes The following is an extract from the fixed Asset register of Star Manufacturers (Pty) Ltd. Star Manufacturers year of assessment ends on 30 June each year. COST PRICE 1,300,000 ASSET Office Building Factory Building Machine A Machine B Furniture & Fittings DATE OF ACQUISITION 1 July 2017 1 January 2017 1 March 2016 1 January 2018 1 July 2014 105,000 150,000 84,000 Page 9 of 15 10 Required: Calculate the applicable deductions for the years of assessment 2017 and 2018. Table 1: Individual tax rate table Income Bracket N$ 0 - N$ 50,000 N$ 50,001 - N$ 100,000 N$ 100,001 - N$ 300,000 N$ 300,001 - N$ 500,000 N$ 500,001 - N$ 800,000 N$ 800,001 - N$ 1,5 mill. Above N$ 1,5 million Tax calculation NIL (No tax) 18 % of amount above N$ 50,000 N$ 9,000 + 25% of amount above N$ 100,000 N$ 59,000 + 28% of amount above N$ 300,000 N$ 115,000 + 30% of amount above N$500,000 N$ 205,000 + 32% of amount above N$ 800,000 N$ 429,000 + 37% of amount above N$ 1,5 mill