Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information is given for a project that was completed: The project cost was initially R6038 in the beginning of 2020 for a automated

The following information is given for a project that was completed: The project cost was initially R6038 in the beginning of 2020 for a automated selling system. During the year 2020 a profit before tax and depreciation was made of R5589. Depreciation was calculated as R1666 for the year 2020. During the year 2021 a profit before tax and depreciation was made of R5979. At the end of the year 2021 depreciation was again calculated as R1969. The automated selling system was sold at the end of 2021 at book value. Book value is the Initial cost - the sum of all depreciation. The company is taxed at 28% of profit before tax. The company uses MARR of 100*0.266%. Calculate the amount of tax paid in 2021 to two decimals accurate

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

Students also viewed these Finance questions