Ngwenya (Pty) Ltd has a taxable income of R225 000 before taking into account this information.

Ngwenya (Pty) Ltd during the 28 February 2025 year of assessment, had the following two transactions occur which the financial accountant asks you what the tax implications are:

Transaction 1:

Ngwenya purchased trading stock during the current year of assessment at a cost of R30 000. This stock was given for no consideration to a homeless shelter. The shelter is not a registered PBO. The stock had a market value of R51 000.

Transaction 2:

Trading stock (specific items) were purchased for an amount of R138 000 during the year of assessment. None of this trading stock were sold and at year-end after the auditors' stock take, these specific items had a market value of R71 000.

1 October 2024 it paid R150 000 as a premium on the insurance cover of its trading assets to 30 September 2025.

How much is deductible by Ngwenya (Pty) Ltd in determining it's taxable income for the year of assessment ended 28 February 2025.

Ngwenya (Pty) Ltd imports trading stock from Brazil. The cost of the trading stock is the equivalent of R4 200 000, shipping costs are R90 000, insurance costs are R50 000 and customs and excise duties are R420 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 leases a one-bedroom flat in Durban for a one-year period from 1 August 2024 to 31 July 2025 for its employees who must travel from other locations to work in Durban for extended periods of time. The company paid the annual rental of R140 000 in advance on 1 August 2024.

How much is deductible by Ngwenya (Pty) Ltd in determining its taxable income for the year of assessment ended 28 February 2025.

R900 000. The machine was brought into use immediately. On 1 October 2024 the machine was sold for R750 000 cash.

Calculate any recoupment for Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act. In terms of Binding General Ruling No. 7, an acceptable write-off period for this asset would be three (3) years.

Ngwenya (Pty) Ltd had the following bad debts as at 28 February 2025:

Bad debts - relating to trade debtors - Namibian located customers = R67 000

Bad debts - relating to trade debtors - South African located customers = R153 000

Bad debts - relating to loans made to former employees = R16 800 (including interest charged on the loans of R980)

During the 2025 year of assessment ending 28 February 2025, Ngwenya (Pty) Ltd moved to new premises. The total cost of this move was R25 000, made up as follows:

-moving of its shop equipment - R13 500

-moving of all its trading stock - R11 500

Ubuntu (Pty) Ltd acquired a new motorcycle at a cost of R90 000 on 1 November 2024 and immediately brought it into use in its business, for the purpose of making deliveries. The motorcycle was used throughout the year of assessment ended 28 February 2025. In terms of Binding General Ruling No. 7, an acceptable write-off period for this asset would be four (4) years.

Calculate the wear-and-tear allowance to be claimed in respect of the motorcycle for income tax purposes in the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.