PART B $(8)$

Buildex $($Pty$)$ Ltd sold a factory building for R$8250000$ on $1$ November $2018$ and its tax value at

this date was R$1050000.$ The company acquired the factory building at a cost of

R$4200000$ on $1$ September $2004$ and brought it into use directly in a process of manufacturing

at the same date. Assume that the adjusted proceeds for capital gains tax purposes are R$5100$

$000.$ Valuation costs of R$7000$ were paid to a sworn appraiser who determined the market

value of the building to be R$900000$ as at $1$ October $2004.$ The time$-$apportionment base cost of

this asset is R$800000.$ Buildex $($Pty$)$ Ltd$$s year of assessment ends on $31$ December $2018.$

Required:

Calculate only the amount of the base cost of the building, which will form part of the capital

gains tax calculation for Buildex $($Pty$)$ Ltd$$s $2019$ year of assessment.