Part A $(5$ marks, $9$ minutes$)$

A registered VAT vendor purchased a computer for up to $70\%$ use in providing exempt supplies and

$30\%$ use in the course of making taxable supplies. The computer had a total cost of R$28750$

$($including VAT$)$ when it was acquired. The vendor later sold the computer at its market value of

R$31050($including VAT$).$

REQUIRED:

Discuss, supported with calculations, all the input tax consequences arising from

the above transaction.