Study the scenario and complete the question(s) that follow(s): ...
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Accounting
Study the scenario and complete the questions that follows:
Billy Vein, a construction worker for Candrat Construction Limited Candrat overloaded his wheelbarrow while working on the fifth floor of a construction site. The wheelbarrow became unsteady, and Billy lunged to steady it This caused him to lose his balance and he plunged five floors to his death. His wife, devastated by his death, sued the company for compensation.
In an outofcourt settlement signed on January Candrat agreed to pay Billys wife a lump sum payment of R as compensation. Candrat paid the amount on February In defending the case, Candrat incurred R in legal expenses.
Source: Arendse, J
Required:
Explain which of the above amounts, if any, Candrat Construction Limited will be permitted to deduct in the determination of its taxable income for the year of assessment ended January ALSO Marks will be awarded for the abovementioned technical aspects and general presentation including references to the legislation and case law.
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