Loral is 28 years old. During the current year of assessment, he earned a salary R500 000. He contributed R60 000 to his retirement fund. His employer contributed R65 000 to his retirement fund. He contributed R6 000 per month to a medical aid fund for the full tax year. His employer made an equal amount of contributions to his medical aid for the for the full tax year. YOU ARE REQUIRED to calculate the retirement fund contribution deduction which Loral will be allowed to deduct from his taxable income for the current year of assessment. Select one: a. R125 000 O b. R197 000 C. R175 175 O d. R60 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Har.6

Loral is 28 years old. During the current year of assessment, he earned a salary R500 000. He
contributed R60 000 to his retirement fund. His employer contributed R65 000 to his retirement fund.
He contributed R6 000 per month to a medical aid fund for the full tax year. His employer made an
equal amount of contributions to his medical aid for the for the full tax year. YOU ARE REQUIRED to
calculate the retirement fund contribution deduction which Loral will be allowed to deduct from his
taxable income for the current year of assessment.
Select one:
a. R125 000
O b. R197 000
C.
R175 175
O d. R60 000

 
 
 

 

 

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