Phumla Ndou works as a night nurse in a hospital where she earns a monthly salary. On her days off she designs and make evening gowns to earn an extra living. She also invested the money she made out of her dress-making business and are earning dividends. She incurred the following expenses: Purchase material to use in her dress-making business, Purchase material to make herself a new dress, Purchase a computer to use in her business to take orders from clients, and Purchase a new sewing machine. YOU ARE REQUIRED to choose the incorrect answer. Select one: O a. The material purchase to use in her business will be deductible in terms of the general deduction formula. O b. The new sewing machine will not be deductible in terms of the general deduction formula. c. The material purchase to make herself a new dress will not be deductible in terms of the general deduction formula. O d. The computer purchase for her business will be deductible in terms of the general deduction formula.
Phumla Ndou works as a night nurse in a hospital where she earns a monthly salary. On her days off she designs and make evening gowns to earn an extra living. She also invested the money she made out of her dress-making business and are earning dividends. She incurred the following expenses: Purchase material to use in her dress-making business, Purchase material to make herself a new dress, Purchase a computer to use in her business to take orders from clients, and Purchase a new sewing machine. YOU ARE REQUIRED to choose the incorrect answer. Select one: O a. The material purchase to use in her business will be deductible in terms of the general deduction formula. O b. The new sewing machine will not be deductible in terms of the general deduction formula. c. The material purchase to make herself a new dress will not be deductible in terms of the general deduction formula. O d. The computer purchase for her business will be deductible in terms of the general deduction formula.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 34P
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