Stephen Plough is a farmer in the Omaheke region and he supplies you with the following information for the year ended 28 February 2022.
- During the year, Stephen and his family consumed 3 cows. The market value of one cow is N$5,750. He also donated 4 cows to the local farmers union festival
- He purchased a Toyota Land Cruiser 4 x 4 during the year for N$390 000 (VAT included). He uses it on the farm as well as going on holiday and private and business trips to Otjiwarongo, Swakopmund, Windhoek etc. His logbook shows the following: Farm use 12 000 km. Holidays 33 000 km, going to town for business and private purposes 50/50. His total kilometre reading on 28 February 2022 was 63 000 km. He spent N$20 000 on fuel, oil and maintenance during the year
- The balance brought forward from the prior year, relating to capital development expenditure,amounts to N$11,000
Calculate the taxable income for Stephen Plough for the 2022 year of assessment. (17 marks)
Marks will be allocated for reasons whenever an amount is excluded from your calculation.
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