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Magnus (Pty) Ltd purchased stock for R57 500 (including VAT). The company also incurred handling fees of R3 500 (VAT excluded) and paid a transporter R5 000 (VAT excluded) to deliver the stock. What will the the cost price of the stock be for tax purposes? OA. 50 000 OB. 58 500 ER O C. 60 000 OD. 7 500

Magnus (Pty) Ltd purchased stock for R57 500 (including VAT). The company also incurred handling fees of R3 500 (VAT excluded) and paid a transporter R5 000 (VAT excluded) to deliver the stock. What will the the cost price of the stock be for tax purposes? OA. 50 000 OB. 58 500 ER O C. 60 000 OD. 7 500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Magnus (Pty) Ltd purchased stock for R57 500 (including VAT). The company also incurred handling fees of R3 500 (VAT excluded) and paid a transporter R5 000 (VAT excluded) to deliver the stock. What will the the cost price of the stock be for tax purposes? OA. 50 000 OB. 58 500 O C. 60 000 O D. 7 500
Transcribed Image Text:Magnus (Pty) Ltd purchased stock for R57 500 (including VAT). The company also incurred handling fees of R3 500 (VAT excluded) and paid a transporter R5 000 (VAT excluded) to deliver the stock. What will the the cost price of the stock be for tax purposes? OA. 50 000 OB. 58 500 O C. 60 000 O D. 7 500
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