Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question two [25] 2.1 beauty radebe owns a car dea

QUESTION TWO [25] 2.1 Beauty Radebe owns a car dealership in Newcastle. During July 2016...

90.2K

Verified Solution

Question

Accounting

QUESTION TWO [25]

2.1 Beauty Radebe owns a car dealership in Newcastle. During July 2016 a relative of hers needed a motor vehicle but could not afford one. Mrs Radebe agreed to accept ten sheep in exchange for the vehicle. The vehicle had a market value of R20 000 and the ten sheep had a value of R30 000.

2.2. Benjamins hobby is to enter magazine competitions whenever he has spare time. On 25 January 2017, he won a competition including a cash prize of R150 000 which was paid to him three days later.

2.3 Elizabeth has been included in her late grandmothers last will and testament. As per the wishes of her late grandmother, Elizabeth must receive R1 000 000. Elizabeth has decided that she wishes to receive this amount in ten payments of R100 000 for the next ten years. Elizabeth received her first payment of R100 000 on 30 January 2017.

You are required to discuss whether the amounts referred to above (2.1 2.3) constitute gross income in the hands of the respective recipient. Date of accrual/year of assessment must also be mentions.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Is it possible for a company to have negative net income but at the same time...

Statistics
1.2K views

You want to find the proportion of residents in Richmond who support bringing a professional sports...

Finance
1.2K views

You observe the exchange rates from the following 4 currencies(US, EU, UK, and Japan): a.$1.19/€, $1.30/£, $0.0091/¥ b.€0.84/$,...

General Management
1.2K views

This week’s assignment is a position paper. Below are two statements of which you will select...

Geometry
1.2K views

The graph shows quadrilateral PQRS and its diagonals 104 9 8 7 654321 2 10...

Basic Math
1.2K views

A line segment is divided in two segments such that the ratio of the long...

Basic Math
1.2K views

A college statistics class conducted a survey of how students spend their money. They gathered...

Accounting
1.2K views

Question 1 of 1 -11 Ini Marin Corp. sold an investment on an installment basis....

Accounting
1.2K views

6. Eaton y Elsie son marido y mujer y presentan una declaracin conjunta para 2012....

Accounting
1.2K views

Your firm is considering building a $590 million plant to manufacture HDTV circuitry. You expect...

Accounting
1.2K views

Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost...

Accounting
1.2K views

Question 8 1 pts Describe the conclusion you draw by comparing the...