Only South Africa Tax Law can be applied and it is resident tax based Overport Boksburg operates a small metal working business in Mobeni (Durban). During the 2020year of assessment, she developed a particular process for use in the process of a certain typeof article that is manufactured by her business. In developing and perfecting this product, sheincurred an expenditure amounting to R22 500.The Minister of Science and Technology approved this research and development that was carriedout by Overport Boksburg.Furthermore, Overport Boksburg was granted a South African patent for her invention on 30September 2019. She then used the patent in her business operations. The legal costs incurredfor her patent registration were R3 000. The patent confers protection for 20 years.3.1You are required to determine if the above expenditure is deductible in the determination ofOverport Boksburg's taxable income for the year of assessment 2020.

Given: Incurred expenditure amounting=R22,500 Incurred patent registration=R3,000

Answered: ssment, sh t is manuf

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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