Page 22 - Trading Stock

Example (cont)

 (d) Trading stock, which cost the taxpayer R5 000, is

donated to a qualified PBO and a s 18A certificate is

obtained. The market value of the trading stock on the

date of donation was R7 500.

 (e) Trading stock (a computer), which cost the

taxpayer R5 000 to manufacture, is taken from stock

and will be used by the taxpayer as a capital asset in

the finance department. The market value of the

trading stock on the date of conversion was R7 500.

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