QUESTION $4$

$(15$ MARKS$)$

ANTS Limited has submitted their inventory records for review and assistance with the tax calculations for the assessment year ending $28$ February $2025.$ The company has provided a detailed list of inventory items along with the relevant costing information to facilitate an accurate evaluation of their financial position and compliance with tax regulations.

Total purchases during the assessment year amounted to R$2950000$ while the company generated sales of R$5895000.$ A notable aspect of the inventory includes items valued at R$35000$ that were inherited by the company in November $2024.$

$\backslash$table$[[,$Cost Price,Market Price$],[1$ March $2024,$R$,$R$],[$Finished goods,$378000,415000],[$Raw materials,$13550,12950],[$Packing materials,$18000,18500],[$Machinery spares,$4200,4800],[28$ February $2025,,],[$Finished goods,$305000,355000],[$Raw materials,$20000,18500],[$Packing materials,$3100,1100],[$Machinery spares,$5000,6000]]$

Required:

$4\mathrm{.}1$ Calculate the opening and closing stock values of ANTS Limited for the year of assessment ended $28$

$(10$ Marks$)$

February $2025.$

$4\mathrm{.}2$ Calculate the taxable income of ANTS Limited for the year of assessment ended $28$ February $2025.$

$(5$ Marks$)$