Page 53 - Taxation F6

Question

• In the period ended 28 February 2017, Baby Good (Pty) Ltd

made sales of R1,700,000 and acquired inventory of

R550,000. Baby Goods (Pty) Ltd also paid wages to the store

manager of R250,000. An annual insurance premium of

R70,000 was paid by Baby Goods (Pty) Ltd on 2 April 2016 to

insure the shop fittings and the inventory until 1 April 2017.

On 28 February 2015, the value of Baby Good (Pty) Ltd’s

closing inventory was R100,000.The opening inventory as at

1 March 2016 is equal to R80 000.

• Required:

• Calculate the taxable income of Baby Good (Pty)Ltd.

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