Question 4 You have received the below information regarding the relevant client: Client 1. Bruce Nel is Truck dealer. He has 8 trucks on his showroom floor. Since he wanted space for new models, he offered half of these trucks to his clients at a discounted price of R399 999 each. All 4 trucks were sold during the current year of assessment. Client 2 Abraham is a racehorse trainer who sometimes bets on the horses that he trains. One of these horses won the 2021 Durban July race and Abraham won an amount of R800 500 after staking R350 on the bet. Client 3 Thado met with potential clients on a weekly basis and, therefore, always had to be dressed professionally. For this reason, the company bought Thado a plain, black and blue suit from a local clothing company (Men's Wear) every year in January at R7 500. REQUIRED Question 4 In the above case studies, state whether or not the amounts should be included in gross income and give detailed reasons for your answer.

Question 4 You have received the below information regarding the relevant client: Client 1. Bruce Nel is Truck dealer. He has 8 trucks on his showroom floor. Since he wanted space for new models, he offered half of these trucks to his clients at a discounted price of R399 999 each. All 4 trucks were sold during the current year of assessment. Client 2 Abraham is a racehorse trainer who sometimes bets on the horses that he trains. One of these horses won the 2021 Durban July race and Abraham won an amount of R800 500 after staking R350 on the bet. Client 3 Thado met with potential clients on a weekly basis and, therefore, always had to be dressed professionally. For this reason, the company bought Thado a plain, black and blue suit from a local clothing company (Men's Wear) every year in January at R7 500. REQUIRED Question 4 In the above case studies, state whether or not the amounts should be included in gross income and give detailed reasons for your answer.

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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