Page 27 - F6 - Trading Stock

Solution

Purchases s11(a) (15 000)

Deemed deduction – inheritance: 5 000 × R3,50 (@

MV ito s 22(4)) (17 500)

Sales (gross income) 12 750

Closing stock

(calculated on a FIFO basis) 23 500

(2 000 (5 000 – 3 000) shares @ 3 750

R3 = 6 000)

(5 000 shares @ R3,50 = 17 500

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