Tech Innovators $($Pty$)$ Ltd $(\text{'}$Tech Innovators'$),$ incorporated in South Africa in $2005,$ is a local technology company that specialises in developing innovative software and hardware products. They offer a wide range of services, including software development, IT consulting, and hardware design. Tech Innovators has a February financial year$-$end. The company is not a small business corporation as defined for normal tax purposes.Below is an extract of the statement of profit or loss and other comprehensive income of Tech Innovators for its $2024$ financial year$-$end. Notes RGross profit $3427500$Other income: Local interest $123000$ Profit from the sale of drone $23333$Operating expenses: Depreciation $3(30333)$ Research and development expenditure $4(250000)$ Legal expenses $5$ Water and electricity $(24500)$ Prepaid rent expenditure $6(240000)$ Salaries and wages $7(450000)$ Speeding fines $8(4000)$ Restraint of trade $9(200000)$ Donation $10(150000)$Profit before tax $2105000$Notes:

$1.$ The R$23000$ interest accrued is from the business bank account held with a South African bank$\mathrm{.}\mathrm{}$

$2.$ Tech Innovators purchased a cutting$-$edge drone for its research and development team's use on $1$ June $2022$ at a cost of R$80000$ and was brought into use on the same date. The drone was an essential tool for testing and improving their aerial surveying software. On $31$ January $2024,$ after extensive testing and upgrading of their technology, Tech Innovators decided to sell the drone to one of their top clients who specialises in aerial data analysis for R$50000.$ Assume that SARS allows a write$-$off period of $3$ years for drones. For accounting purposes, the company depreciated the drone over $4$ years$\mathrm{.}\mathrm{}$

$3.$ The R$30333$ depreciation expense was recognised in accordance with the accounting policy of Tech Innovators on the following assets:$3\mathrm{.}1$A depreciation expense of R$18333$ for the drone purchased $($see note $2$ above$)3\mathrm{.}2$Tech Innovators purchased a new manufacturing machine to enhance theirhardware design capabilities. The machine was purchased on $1$ September $2023$ for R$120000$ and was immediately brought into use. This acquisition aligns with Tech Innovators commitment to advancing technical capabilities and delivering innovative solutions to their clients. For accounting purposes, the company depreciated the manufacturing machine over $5$ years$\mathrm{.}\mathrm{}$

$4.$ Tech Innovators developed groundbreaking proprietary software that revolutionises the field of artificial intelligence in various industries. Tech Innovators incurred capital expenditure of R$250000$ in research and development costs. The Minister of Science and Technology approved this research and development expense under the provisions of section $11$D$(9)\mathrm{.}\mathrm{}$

$5.$ On $31$ July $2023,$ Tech Innovators was granted a South African patent for this invention and used this patent in their trade. To complete the patent registration process, Tech Innovators paid legal expenses amounting to R$15000,$ which was not recorded in their financial records. The patent protection grants Tech Innovators exclusive rights to their software for a period of $20$ years from the date of registration. $\mathrm{}$

$6.$ On $1$ February $2024,$ Tech Innovators entered into a new lease agreement for their office space which is utilised for trading purposes. The agreement stipulates that Tech Innovators must pay the $12$ months rent in advance on the date of signature of the contract. The monthly rental is R$20000.($R$20000$ x $12=$ R$240000)7.$ Salaries and wages comprise the following:a$.$ The total amount paid to employees in net salaries and wages was R$450000.$b$.$ Byte Bards joined Tech Innovators as a full$-$time learner on $1$ January $2024,$ receiving a salary of R$12000$ per month $($which formed part of net salaries and wages expense in $7.$a$).$ Byte Bards has a disability and has an NQF level $7$ qualification. Byte Bards entered into a registered learnership agreement with Tech Innovators for two years. The agreement adheres to all the specifications of the Skills Development Levies Act and is registered with the relevant SETA. No recording was done in Tech Innovators books for this learnership agreement transaction$\mathrm{.}8.$ Speeding fines of R$4000$ were deducted which the directors consider to be a normal business expense$\mathrm{.}9.$ R$200000$ was paid by Tech Innovators to Nova$-$Tech Solutions $($Pty$)$ Ltd $(\text{'}$NovaTechSolutions$\text{'})($a local technology company$)$ after signing an agreement that Nova$-$Tech Solutions will not open any of its stores within a $50$ kilometres radius of Tech Innovators store. Nova$-$Tech Solutions is not a personal service provider as defined in par $1$ of the Fourth Schedule$\mathrm{.}10.$On $1$ March $2020,$ Tech Innovators purchased computer equipment for a total cost of R$150000.$ They decided to donate the computer equipment to "Little Coders," an educational charity focused on teaching coding and technology skills to underprivileged children. The market value of the donated computer equipment was assessed at R$40000$ on $29$ February $2024,$ the date of the donation. Tech Innovators obtained a section $18$A receipt from Little Coders.REQUIRED:Calculate, with references to the relevant sections of the Income Tax Act where applicable, the taxable income of Tech Innovators $($Pty$)$ Ltd for the $2024$ year of assessment. Start with the profit before tax of R$2105000.$Add back any accounting entries.Please ensure that your response includes clear documentation or indication when no adjustments are required.Ignore any capital gains tax and VAT implications.Please use the following structure to format your answer to Question $1$:Note Reference to the section of the Income Tax Act $/$ DescriptionCalculations Value $($R$)$xx $13$quin capital allowance$5\%$ x R$2000000(100000)$xx Section $11($d$)$ repairs deductible, thus no adjustmentnil