Question 1 of 3 4.0 Points Barbara (age 68) is married out of community of property to Dale (age 65).

The f ollowing transactions occurred during Barbara s 2012 year of assessment: 15 June 2011: Barbara gave the Bare Dominium of a farm she owns in Donnybrook to Dale, as Dale grew an interest in farming cows. The farm cost Alexandra R1 295 000 and has a market value of R3 744 000. The usufruct is for a period of 10 yea rs. 1 July 2011: Barbara gave her mother-in-law a diamond necklace for her 95th birt hday. The diamond necklace cost Alexandra R9 500, and the market value on 1 July 2011 is R10 780. 21 August 2011: Barbara s daughter Anna (21 years old) went on a gap year overseas . Barbara began to give Anna R15 000 every month starting from 21 August 2011. T he allowance will be paid out for 2 years. Anna is employed by Rand Merchant Ban k and is recently nominated as the youngest Chief Financial Officer of Rand Merc hant Bank. Anna earns R15 000 000 per annum (before tax) 24 December 2011: Barbara donated 100 teddy bears to the Red Cross Children s Hosp ital as a Christmas present for the kids. The teddy bears cost Alexandra R7 590 in total when she purchased it on 1 November 2011 (market value on 1 November is also R7 590). The market value of the teddy bears on 24 December 2011 amounted to R7 100. 15 February 2012: Alexandra s mother-in-law discovered that Alexandra had donated teddy bears every year to the Red Cross Children s Hospital and felt bad for accep ting the diamond necklace. She returned the necklace to Alexandra with a note sa ying: you can put this money to better use. Calculate the total donations tax payable by Barbara for the 2012 year of assess ment. Assume that the Red Cross Children s Hospital is a Public Benefit Organizati on as defined. A. R0 B. R42 996 C. R44 416 D. R3 576 Question 2 of 3 3.0 Points Themba (53 year old male)owns a farm situated in Kwazulu Natal. The farm cost Th emba R5 342 000 when he bought it in 2004. On 1 February 2012, Themba decided to give the usufruct in the farm to his son Jake (28 year old male) and the bare d ominium to his daughter Jacqueline (30 year old female). The market value of the farm on 1 March 2011 is R7 942 000 and on 1 February 2012 is R8 132 900. Calculate the value of the bare dominium given to Jacqueline. A. R63 748 B. R68 478 C. R65 559 D. R74 789 Question 3 of 3 3.0 Points Shelly (age 41) is the CEO of a large company called SeedFix (Pty) Ltd, speciali zing in Equipment hire. On 1 March 2011 Shelly authorised a payment of R550 000 from SeedFix (Pty) Ltd to her nephew Sipho (age 32) in order for Sipho to start his own company. Sipho does not have to give the money back, and SeedFix (Pty) L

td will not receive any shares in this new company. Shelly also donated a divide nd earning investment to a trust formed for the benefit of her children. The inv estment had cost R42 000 and had a market value of R73 000 when donated to the t rust. Calculate the total donations tax payable by Tarryn for the above transact ions. A. R14 600 B. R0 C. R104 600 D. R118 400