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QUESTION FOUR Vusi Zulu obtained a degree in information systems and decided to open his own business. He purchased an old factory site and moved
QUESTION FOUR Vusi Zulu obtained a degree in information systems and decided to open his own business. He purchased an old factory site and moved in. Business went well and he soon found that he had to improve and repair his premises. The doors were very dilapidated and had to be replaced. Vusi decided that, instead of spending money on new doors, he would install a display window where one door had been and a single glass door where the other had been. The display window would enable customers to clearly see Vusi's products. The cost of this installation was R30 000 The roof was made of rusty corrugated iron and leaked badly. Vusi decided to replace it with a concrete slab at a cost of R100 000. There had originally been three lengths of shelving affixed to the wall. The chipboard material of the shelves had swelled in the damp and become unserviceable. Vusi had these replaced with steel shelves at a cost of R9 000 and then, at a cost of a further R7 000, extended the shelving further around the wall. - Finally he painted the interior and exterior walls at a cost of R25 000. Required: Explain, with reasons, how much of this expenditure will be deductible in terms of section 11(d). QUESTION FOUR Vusi Zulu obtained a degree in information systems and decided to open his own business. He purchased an old factory site and moved in. Business went well and he soon found that he had to improve and repair his premises. The doors were very dilapidated and had to be replaced. Vusi decided that, instead of spending money on new doors, he would install a display window where one door had been and a single glass door where the other had been. The display window would enable customers to clearly see Vusi's products. The cost of this installation was R30 000 The roof was made of rusty corrugated iron and leaked badly. Vusi decided to replace it with a concrete slab at a cost of R100 000. There had originally been three lengths of shelving affixed to the wall. The chipboard material of the shelves had swelled in the damp and become unserviceable. Vusi had these replaced with steel shelves at a cost of R9 000 and then, at a cost of a further R7 000, extended the shelving further around the wall. - Finally he painted the interior and exterior walls at a cost of R25 000. Required: Explain, with reasons, how much of this expenditure will be deductible in terms of section 11(d)
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