Page 29 - F6 - Capital Gains Tax - Assets & Disposals

Homework Question

 Bruno (Pty) Ltd purchased a new manufacturing machine

for R800 000 (excluding VAT) on 1 January 2014 and

brought it into use in a process of manufacture on that date.

On 31 December 2014 the machine was sold for R900 000

(excluding VAT).

 Bruno (Pty) Ltd purchased a new computer on 1 August

2014 for R300 000 (excluding VAT) and immediately

brought it into use in his trade. The computer was sold on

31 January 2015 for R450 000 (excluding VAT). The write-

off period on computers ito Binding General Ruling No. 7 is

3 years.

 Bruno's year-end is 28 February.

Calculate the effect of the above transactions on the
taxable income of Bruno (Pty) Ltd for the 2015 year

of assessment (Section numbers are required).