Contreras acquired his primary residence after 1 October 2001 for R900 000. During the current year of assessment, he sold it for R2 900 000. He used his primary residence 20% for trade purposes and claimed 15% of cost for income tax purposes. Which of the following statement is incorrect regarding the declaration of the sale of his primary residence in the income tax return?a.The capital gain attributable to the sale of the primary residence is R1600 000b.The capital gain attributable to trade is R400 000.c.The capital gain attributable to trade can be reduced by the annual exclusion of R40 000 available to natural persons.d.The primary residence exclusion that can be claimed R2 000 000.

Visagie is 36 years old. During the current year of the assessment, he sold his primary residence for R680 000. He bought the house in 2007 for R320 000. You may assume he did not sell any other capital assets during the current year of assessment and that he did not have any assessed capital loss brought forward from the prior year. YOU ARE REQUIRED to calculate the taxable capital gain.a.R360 000b.R320 000c.R0d.R128 000

During the current year of assessment Fellen sold her primary residence for R7 500 000. It was purchased on 1 June 2006 for R3 780 000. She incurred commission costs on the sale of property of R67 500. YOU ARE REQUIRED to calculate the taxable capital gain to be included in Fellen’s taxable income because of the sale of the primary residence. You may assume that she did not sell any other capital asset.a.R1 652 500b.R1 612 500c.R3 652 500d.R645 000

The gains in value from which of the following are LEAST likely to be assessable income in Australia based on the lecture material:Question 8AnswerHaoyu bought some stocks for $10,000 and sold them later for $15,000.Zihan bought a one bedroom apartment for $500,000 and sold it 5 years later for $600,000. She rented it out as an investment property for the entire period.John bought a one bedroom apartment for $500,000 and sold it 5 years later for $600,000. He lived in it for the entire period as his main residence.Sarah bought Bitcoin for $10,000 and sold it later for $15,000.

An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements. The carrying value of the property was GHS8 million, and the revalued amount was GHS10 million. Tax base of the property was GHS6 million. In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30%. Where will the tax liability be recognized and at what amount?a.In statement of recognized income and expense at GHS1.4 million.b.In equity at GHS1.2 million.c.In the income statement at GHS600,000.d.In retained earnings at GHS700,000.

An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements. The carrying value of the property was GHS8 million, and the revalued amount was GHS10 million. Tax base of the property was GHS6 million. In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30%. Where will the tax liability be recognized and at what amount?a.In equity at GHS1.2 million.b.In statement of recognized income and expense at GHS1.4 million.c.In retained earnings at GHS700,000.d.In the income statement at GHS600,000.Clear my choice