FAC3701 - SU4 (B ) - Theory Relating to Deferred Tax on Revalued Capital Assets

[@thembimaupa1650]

Hi sir am looking at this video which is super helpful but i can't figure out where does 18,6% comes from, was it part of the information provided or was it calculated???

[@TabaldiEducation]

66.67% x 28% :)

[@WCyoyoyo]

Hi sir I got a question about a sales of asset with capital gains tax. The question goes there is a depreciable asset of following details: SP=160K; HC=100K; acct dep=10K; TB=60K; Capital gains tax cost base=125K There is only one transaction for the period which is the sale of asset. Tax rate for normal and capital gains are both 30% It is obvious that the tax is composed of 1. SP-HC = 160K - 125K = 35K 2. HC-TB = 100K - 60K = 40K summed up to 75K and taxed at 30%. But my question is, when computing current tax calculation like you do, I can't manage to get the taxable profit of 75K as stated above. Current Tax Computation: Profit before tax [[70K]] Fair value gain (0K) Profit on sale(SP-HC) (60K) [[(60K)]] Dep. 0K Capital allowance (0K) Profit on sale up to HC (10K) Recoupment of tax 40K [[30K]] Cap Gain Tax ((60K-(125K-100K)-(60K-35K)) [[10K]] =50K Taxable profit You can see the sum up of the figures with [[ ]] does not add up to 75K of the taxable profit. Can you please advise? It would be really helpful as my professional exam is coming up, THANK YOU!!!

[@TabaldiEducation]

Hi Will. Thanks for the message. Quite a detailed question you have there. We generally do not assist with full assignment and examination questions on this platform. Such assistance would be offered to students subscribed to our online courses which at the moment is focused towards University of South Africa students. For more information, visit www.tabaldi.org.

[@Nongcebom_]

Link to the next video please. I can't find it...

[@TabaldiEducation]

Hi Nongcebo, these are just some of the videos for the FAC3701 course. You can access the full course product on www.tabaldi.org. If you have any queries please mail us on [e-mail] and we will assist you gladly.