Required: (a)Prepare a livestock reconciliation statement. (9 marks) (b)Compute Mr. Hannaford’s minimum taxable income/(loss) from livestock farming for the year 31 December 2013. (6 marks) (c) Tinashe bought a farm in Shurugwi on 30 September 2012 on which he commenced mixed crop farming on 1 January 2013. The following are the fixed assets acquired/constructed and used on the farm for the year ended 31 December 2013. $ Farm implements 200 000 Tractor 44 000 Combine Harvester 300 000 Borehole and water tank 19 500 Farm workers’ compounds (10 units) 150 000 Farm manager’s house 75 000 Fencing 28 000 Fowl runs 7 800 Tobacco 35 000 Irrigation equipment 69 000 Two passenger motor vehicles 65 000 Tinashe also incurred the following expenses in the assessment year 2013. Stumping and clearing of the land 5 000 Geophysical survey expenses 3 500 Contour ridges 6 000 Required (i)State 3 tax reliefs and concessions that are available to livestock farmers under drought conditions. (3) (ii) Compute the total allowable deductions for Tinashe for the tax year ended 31 December 2013. Maximise the deductions. (7) QUESTION 4 Ruvimbo and Wadzanai are partners in a cattle ranching project on a farm in Marondera. They have been conducting their ranching business in partnership sharing
Required: (a)Prepare a livestock reconciliation statement. (9 marks) (b)Compute Mr. Hannaford’s minimum taxable income/(loss) from livestock farming for the year 31 December 2013. (6 marks) (c) Tinashe bought a farm in Shurugwi on 30 September 2012 on which he commenced mixed crop farming on 1 January 2013. The following are the fixed assets acquired/constructed and used on the farm for the year ended 31 December 2013. $ Farm implements 200 000 Tractor 44 000 Combine Harvester 300 000 Borehole and water tank 19 500 Farm workers’ compounds (10 units) 150 000 Farm manager’s house 75 000 Fencing 28 000 Fowl runs 7 800 Tobacco 35 000 Irrigation equipment 69 000 Two passenger motor vehicles 65 000 Tinashe also incurred the following expenses in the assessment year 2013. Stumping and clearing of the land 5 000 Geophysical survey expenses 3 500 Contour ridges 6 000 Required (i)State 3 tax reliefs and concessions that are available to livestock farmers under drought conditions. (3) (ii) Compute the total allowable deductions for Tinashe for the tax year ended 31 December 2013. Maximise the deductions. (7) QUESTION 4 Ruvimbo and Wadzanai are partners in a cattle ranching project on a farm in Marondera. They have been conducting their ranching business in partnership sharing
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