Zenith Ltd is a company located in Midrand that manufactures and distributes electronic products and

suppliers.

The following information is available for the year ended $28$ February $2023($all amounts exclude VAT

unless otherwise stated$)$:

R

Sales $10000000$

Purchases and other expenses$/$costs

Purchases for the year $($the company commenced business on $1$

April $2022$ and thus has no opening stock$).$

$5900000$

Closing stock $($at cost$).625000$

A new manufacturing machine was purchased on $12$ March $2022.350000$

Zenith Ltd$.$ purchased a second$-$hand cutter machine on $15$ July $2022.125000$

Purchase of new printing machine $($state of the art$)$ was purchased and

brought into use on $1$ July $2022.$

Delivery and freight charges.

Foundation alterations $($the load bearing of the floor needed to be

strengthened to hold the weight of the printer$).$

$56000$

$2500$

$1500$

An adjoining factory was built and brought into use on

November $2022.$

$1200000$

The company rents a warehousing depot across the road for the entire

year of assessment and the lease premium charged by the landlord is

R$35000$ over the lease term $(5$ years$)$

$17250$

$($rental per month, including

vat$)$

Repairs and maintenance $105000$

Other expenses and allowances $($tax deductible$)160000$

The company registered its logo as a trademark on $4$ March $202240000$

Required:

Compute Zenith Ltd$$s taxable income for the year ended $28$ February $2023$