Page 25 - Trading Stock
P. 25
Share Dealers example
Dean Wing is a resident of the Republic. He is a
dealer in shares. It should be noted that in
determining his closing stock value, he uses the FIFO
basis of valuation.
On 1 April 2014 Dean Wing’s older brother died
and he inherited 5 000 shares in Beaks Ltd from
his brother’s estate. Dean Wing and his late brother
had each purchased (as trading stock) 5 000 shares
in Beaks Ltd, for R15 000 on 1 March 2014. On 1
April 2014 the market value of a Beak Ltd share
was R3,50. 25
