ANNEXURE I: FORMATIVE ASSESSMENT 2 QUESTION 2 (22 marks) On 5 June 2022 Green Limited, a resident of South Africa with a February financial year-end, purchased trading stock from an American supplier for $180000, when the spot rate was R18.52. The full purchase price of the trading stock must be settled on 31 December 2022. Green Limited purchased a foreign currency option from Finbank for $180000 for a six-month period at a strike rate of R18. A premium of R110 500 was paid on 5 June 2022 for this foreign currency option. On 31 December 2022, the spot rate was $1=R18.03. As a result, Green Limited let the foreign currency contract expire. Instead, Green Limited purchased the $180000 at a spot rate of R18.03 and settled the creditor on 31 December 2023. The average exchange rate for the 2023 year of assessment was $1=R18.31. REQUIRED: Discuss the normal tax consequences which arise from the above transactions for Green Limited's 2023 year of assessment in terms of the Income Tax Act. Support your answer with calculations and references to the Income Tax Act where applicable. (22 marks)