1. John, a South African resident, purchased a property for R2,000,000 on 1 March 2023. He did not payany transfer duty at the time of purchase. On 1 October 2024, 18 months after the purchase, John decides tosettle the transfer duty. According to the transfer duty rates as of 1 March 2023, John calculates the duty tobe R58, 075.00. Given that he is 12 months late beyond the 6-month deadline, and the penalty rate is 10%annually on the purchase price for each month missed after the deadline, what is the total amount John mustpay to SARS, including both the transfer duty and the penalty?Choose the correct option.R58, 075.00as transfer duty and R200,000.00 as a penalty, totalling R258,075.00.R58, 075.00as transfer duty and R20,000.00 as a penalty, totalling R78,075.00.R58, 075.00as transfer duty and R240,000.00 as a penalty, totalling R298, 075.00.R58, 075.00as transfer duty and R300,000.00 as a penalty, totalling R358, 075.00.None of the above

To find the total amount John must pay to SARS, including both the transfer duty and the penalty, we…

Answered: 1. John, a South African resident,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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