Page 17 - Chapter 22 - Foreign Exchange (Cont.)
P. 17
Solution 17
Year ended 28 February 2015
Cost of stock [FC100 000 × 6,60 (spot rate)]
Deduction — s 11(a)................................................. (R660 000)
Exchange difference (loss)
Debt: FC100 000 × (7,00 – 6,60) ............................ (R40 000)
Total deduction in 2015 year of assessment ........... (R700 000)
Year ended 28 February 2016
Exchange difference (loss)
Debt: FC100 000 × (7,50 – 7,00) ......................... (R50 000)
Total deduction in 2016 year of assessment ......... (R50 000)
Total net deductions........................... ……..(R750 000)
