QUESTION TWO $(20$ MARKS$)$

The following balances were taken from the final trial balance of Mossie Itd for the year ended $31$ December $2023.$

$\backslash$table$[[,$Rand$],[$Revenue$,600000],[$Cost of Sales,$200000],[$Other expenses $($all tax deductible$),200000],[$Gain on disposal of vehicle $($taxable profit $=$ R$5000),5000],[$Gain on disposal of land $($not taxable$),40000],[$Loss due to hail damage to inventories $($tax deductible$),9000],[$Impairment of goodwill $($Not tax deductible$),5000],[$Loss from expropriation of land $($not tax deductible$),15000],[$Payment received from a supplier for breach of contract $($not taxable$),4000],[$Allowance for credit losses written back $($taxable$),8000],[$Investment $($at cost$)$ in liquidated subsidiary written off $($not tax deductible$),12000],[$Income tax expense $(1),56000]]$

$(1)(600000-200000-200000)28\%=56000$

Additional Information

Assume that all amounts are material for purposes of disclosure

Assume a tax rate of $28\%.$ Deferred tax should be ignored.

The following items are induded in other expenses

$\backslash$table$[[$Operating lease expenses $=$ Offices,$R20000$