Page 95 - P6 Slide - Taxation - Lecture Day 1
P. 95
Example 2 - Roll overs
Milk Ltd purchased a new manufacturing machine on
1 June 2014 at a cost of R200 000. On 1 July 2015
the machine was destroyed in a fire. The company
received R250 000 from its insurer as compensation.
Milk Ltd purchased and started using a more
advanced new replacement manufacturing machine
on 1 September 2015 at a cost of R300 000. Milk Ltd
has a 31 December year-end.
Determine the effect of the above
transaction on Milk's taxable income
for the 2015 year of assessment.
