Decrease in extent of taxable use of capital goods or services

Ms C $($a registered VAT vendor$)$ owns a double$-$storey building situated in Cape

Town. The building is used for mixed purposes, in that it has $8$ shops on the ground

floor used for making taxable supplies and $4$ large residential apartments on the first

floor used for making exempt supplies. The building has been applied as such from

commencement of the business in March $2008$ when the building was acquired for

R$1368000($inclusive of VAT$).$ Ms C elected to use the standard turnover$-$based

method of apportionment and determined that she derived $80\%$ of her income from taxable supplies and $20\%$ from exempt supplies. Therefore, in the April $2008$ tax period, she deducted input tax of R$134400(14/114\backslash$times R$1368000\backslash$times $80\%)$ in

respect of the building.

In March $2009,$ Ms C further purchased a computer system for R$54000($inclusive of

VAT$),$ intended for use in her business. At the time of purchasing the computer

system, Ms C still derived $80\%$ of her income from taxable supplies and $20\%$ from

exempt supplies. Therefore, in the April $2009$ tax period, she deducted input tax of

R$5305(14/114\backslash$times R$54000\backslash$times $80\%)$ in respect of the computer system acquired.

At the end of February $2022,$ Ms C determines that the nature of her business has

changed significantly and that her income now comprises of $60\%$ taxable supplies

and $40\%$ exempt supplies. At the end of that month the cost and OMV of the building is R$1368000$ and R$2280000,$ respectively, and the computer system has an OMV

of R$48000.$

Required:

Calculate the taxable income showing notes and calculations

Calculate the $7$ th schedule fringe benefits