StoneWorld $($Pty$)$ Ltd $($StoneWorld$)$ is a leading manufacturing company in South Africa that designs, manufactures, and sells furniture. The company does not qualify as a Small Business Corporation. $$The company has a $31$ May year$-$end and is a registered VAT vendor generating $100\%$ taxable supplies $($ignore the effect of VAT$).$ SARS deems the manufacturing of furniture $$to be a process of manufacture.

StoneWorld acquired a new manufacturing machine for R$903900$ on $30$ June $2022$ and brought it into use in its manufacturing process on $1$ July $2022.$ The company incurred an additional cost of R$23200$ for the installation of the new machine.

Recognising the requirement for additional stock storage space, StoneWorld engaged in a $5-$year lease agreement with StorSpace $($Pty$)$ Ltd$,$ starting from $1$ October $2022,$ with no option to extend. According to the lease terms, StoneWorld was responsible for erecting improvements on the leased property valued at R$575000,$ Construction of these improvements commenced on $1$ November $2022,$ and they were successfully completed on $31$ December $2022,$ becoming operational on $1$ January $2023.$ The actual cost incurred for the improvements amounted to R$548630.$

Choose the correct option below which reflects the amount deductible for tax purposes for the year of assessment ending $31$ May $2023.$ Round your answer to the nearest rand.

Question $5$Answer

a$.$

R$418965$

b$.$

R$408856$

c$.$

R$425703$

d$.$

R$509269$

e$.$

R$233545$