Ngwenya (Pty) Ltd acquired trading stock from Costly Limited for no consideration on 10 January 2025. This trading stock had cost Costly Limited R122 000 and had a market value of R130 000 on the date of the donation. Ngwenya sold this trading stock for R160 000 during February 2025.

Calculate Ngwenya (Pty) Ltd's taxable income for the 2025 year of assessment ended February 2025.

Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was approved by the Minister of Science and Technology under section 11D(9) on 30 June 2024. The following expenses relating to this research were incurred during the 2025 year of assessment:

-Computer equipment purchased for R1 000 000 was brought into use on 1 September 2024 for the purposes of this research.

-Research consumables for this project were purchased on 31 May 2024 for an amount of R350 000.

-Salaries of R650 000 were paid to research personnel on 31 December 2024.

On 1 February 2024, Ubuntu (Pty) Ltd acquired a new machine for R950 000. The machine was brought into use the same day in a process of manufacture.

Calculate the capital allowance to be claimed by Ubuntu (Pty) Ltd on this machine for income tax purposes for the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd has a gardening maintenance contract with Green Fingers CC to maintain its corporate headquarters yard. The terms of the contract are that the contract is paid in advance on an annual basis. Ngwenya (Pty) Ltd made the payment of R160 000 on 1 January 2025 to cover the period 01 January to 31 December 2025.

On 31 October 2023, Ubuntu (Pty) Ltd acquired and brought into use a new (unused) mainframe file server (non-manufacturing asset) for R450 000. On 1 December 2024, the company incurred moving costs of R50 000 to move the asset from its Johannesburg branch to its Durban branch.

Calculate the total capital allowance to be claimed by Ubuntu (Pty) Ltd on the asset for the 2025 year of assessment ending 28/29 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act.

28 February 2025 year of assessment.

How much is deductible for tax purposes by Ngwenya (Pty) Ltd for the 2025 year of assessment?

Ngwenya (Pty) Ltd imports trading stock from Brazil. The cost of the trading stock is the equivalent of R4 300 000, shipping costs are R95 000, insurance costs are R55 000 and customs and excise duties are R430 000. The trading stock was received at the warehouse by the end of its 2025 year of assessment.

Calculate the value of trading stock for the year of assessment ended 28 February 2025.

Ngwenya (Pty) Ltd purchased a trademark called Nix on 1 November 2024 and a patent called Tix on 1 December 2024. The trademark cost was R710 000 and the cost of the patent was R660 000.

Ngwenya (Pty) Ltd advertises its products on television. It pays a premium once a year. On 1 July 2024 it paid R860 000 for advertisements that will be aired until 30 June 2025.

How much is deductible by Ngwenya (Pty) Ltd in determining it's taxable income for the year of assessment ended February 2025.

iii) R55 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods. Ngwenya (Pty) Ltd's lawyers were successful in defending the company on this matter.