Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What are the correct options here and an explanation on how to get to the answers. 1. How much VAT must the farmer pay? a)

image text in transcribed

What are the correct options here and an explanation on how to get to the answers.

1. How much VAT must the farmer pay? a) R115 b) R1 500 c) R0 d) R380 2. If the input tax for the retailer is R280, how much was the purchases if VAT is at standard rated? a) R1 867 b) R3 000 c) R0 d) R140 3. How much would the total output tax be? a) R578,20 b) R 2 400 c) R2 240 d) R1 140 e) 4. How much is the total tax due to SARS for the farmer, manufacturer, wholesaler and retailer? a) R140, R61,80, R70, and R140 respectively b) R1 500, R61.80, 90 and R170 respectively c) R0, R140, R1 400 and R280 respectively d) R1 140, R2 800 and R140 respectively 5. How much is the total tax due to SARS? a) R401,80 b) R1 661,80 c) R1 821.80 d) R140

Choose the correct answer based on the following tahle. Assume Vat charged at 15% ) \begin{tabular}{|l|l|l|l|c|} \hline Vendor & Selling price & Input tax & Output tax & Tax due to SARS \\ \hline Farmer & R10000 & & ? & ? \\ \hline Manufacturer & R1 000 & R88.20 & R150 & ? \\ \hline Wholesaler & R2000 & R210 & R300 & ? \\ \hline Retailer & R3000 & R280 & R450 & ? \\ \hline & & R578.20 & ? & ? \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Behavioural Approaches To Corporate Governance

Authors: Cameron Elliott Gordon

1st Edition

1138611395, 978-1138611399

More Books

Students also viewed these Finance questions

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago