6. The following is a list of assets subject to wear and tear: Asset Details TAX3701/2023 Machine CR Machine JZ Machine TM Delivery vehicle Computer The machine was purchased second-hand for R1 380 000 (Including VAT) on 1 December 2022 and brought into use on the same day. The machine was sold for R400 000 on 1 January 2023. The machine had originally been bought brand new for R1 035 000 (including VAT) on 1 March 2022 and brought into use on the same day. The machine was purchased to replace machine JZ. The machine was purchased for R1 350 000 (including VAT) on 31 March 2023. The transport costs amounted to R65 000, and installation costs were R33 200. The machine was only brought into use on 15 April 2023. A delivery vehicle, purchased for R540 000 on 30 July 2020, is used to deliver finished products from the factory to the clients premises. A computer acquired on 1 April 2022 at a cost price of R30 000 was distributed to a shareholder as a dividend on 31 March 2023. Its tax value on 31 March 2023 was determined as R20 000 and the market value was R32 200. The taxable capital gain arising from the disposal amounted to R1 760. 7. Immovableproperty Asset Details TAX3701/2023 Low-cost residential unit Commercial building On 1 May 2022, Tirisano sold a low-cost residential unit (just after it was erected at a cost of R260 000) to an employee for R260 000. Tirisano provided an interest-free loan account to the employee to finance the transaction. The employee made no repayment in 2023. Tirisano entered into a lease agreement with Sakhile Properties Ltd, to lease a commercial building from which to house its manufacturing processes. The lease period commenced on 1 September 2022 for a 15-year period, with an optional extension period of another 3 years. In terms of this agreement, Tirisano had to pay a lease premium of R120 000 on 1 September 2022 for the right of use of the property. The lease premium will constitute income of Sakhile Properties Ltd. Tirisano also had to effect improvements on the premises to the value of R450 000 and pay a monthly rental amounting to R12 000 from 1 September 2022. The value of improvements will be income in the hands of Sakhile Properties Ltd. Tirisano brought the commercial building into use on 1 September 2022. The building improvements commenced on 1 October 2022, and they were completed and brought into use on 1 February 2023. The total cost of the improvements was R500 000. 8. ThecompanyreceiveddividendsamountingtoR120000froma10%shareholding in Reatile Ltd, a South African resident company listed on the Johannesburg Stock Exchange. Additional information: Binding General Ruling: No. 7 lists the following write-off periods: - Delivery vehicles:4 years - Computers:3years Calculate normal tax liability