Question1

Majuba (Pty) Ltd is a South African resident. It is a small business corporation that manufactures shoes. The company'sfinancialyearendson28February.Majuba(Pty)LtdisaregisteredvatvendorandthecompanydoesnotapplyIFRS9forfinancialreportingpurposes.

The following information is available for the year ended 29 February 2024 (all amounts exclude VAT unless otherwisestated):

Income	Notes	R
Sales		5050000
Dividendincome	1	80000
Expensesandcosts
Purchaseofrawmaterialon1July2023		2000000
Inventory	2	?
Baddebts		60000
Doubtfuldebts	3	?
Salariesandwages	4	880000
Legalexpenses	5	177000
Patentacquired	6	50000
Repairsandmaintenance		42000
Electricity	7	49000
Restraintoftrade	8	160000
Computercosts(includingVAT)	9	80500
Machinerycosts	10	?seenote10

Notes:

1.Thecompanyreceivedadividendfromalocalinvestmentcompanyon31December2023.

2.The cost price of the opening stock was R560 000 and the market value was R420 000 as on 1 March 2023. The costpriceoftheclosingstockwasR480000andthemarketvaluewasR535000on29February2024.

3.The list of doubtful debts as at 29 February 2024 amounted to R120 000 and 70% of the total amount have been inarrears for more than 120 days. The balance of the debtors have not been in arrears for more than 60 days. Thedoubtful-debtallowancebytheCommissionerforthe2023yearofassessment,amountedtoR42000.

4.SalariespaidduringthecurrentyearofassessmentamountedtoR790000andthecompanyalsocontributedR90000towardstheprovidentfundonbehalfofthecompany'semployees.

5.Legalexpenseswereincurredasfollows:

• DraftingofleasecontractsforthecompanyamountingtoR65000.

• Thebalanceoftheexpensesrelatetocollectionofoutstandingtradedebtors.

6.Majuba(Pty)LtdincurredanexpenseofR50000inacquiringadesignonitstradingmerchandise.

7.Thecompanypaidtheentireamountofelectricityfortheperiod1February2024to31August2024.

8.The full payment was made to the former operations manager on 2 January 2024 for agreeing not to start a businessinSouthAfricawithinaperiodoffouryears.

9.Duetotheexpansionofthebusiness,thecompanypurchasedfourcomputersduringOctober2023forimmediateusebythefinancedepartment.Thetaxpayerelectsthe50:30:20write-offthatpertainstootherassetsintermsofsection12E.

10.On 1 February 2023, Majuba (Pty) Ltd acquired a new manufacturing machine from the United States which wasbroughtintouseon3May2023.ThecostofthemachinewasUS$45000.Thecompanysettledthepurchasepriceinfullon1June2023.Noothercostswereincurredonthemachineandnoforwardexchangecontractwasenteredinto.

Thespotratesareasfollows:

1February2023 $1=R17.00

28February2023 $1=R17.50

3May2023 $1=R17.80

1June2023 $1=R18.00

Required:

CalculateindetailMajuba(Pty)Ltd.'staxliabilityfortheyearended29February2024.

Showallworkingsandfullexplanationswhereapplicable.