Cape Town Footwear Pty Ltd Cape Town Footwear\" oncompany\" is a companyesident in South Africa. It specializesmanufacture of footwear andoperates from afacility located in Cape Town. The company does not qualify as a small business corporation.The Commissioner is satisfied that Cape Town Footwear engages in a manufacturing process.

For the year ended February taxable profit of R was calculated, beforeconsidering the following items Value Added Tax VAT is to be ignored:

Dividends Received and Interest Paid:

Throughout the year, the company took out loans to invest in dividend yielding shares. Itreceived gross dividendsR during the year of assessment. Interest paid ontheseamounted to R for the year. These dividends and interest payments havenot been accounted for in the R taxable profit.

Trading Stock:

Trading stock valuations werefollows:

At March : R

At February : R

Bad Debts:

A trade debtorowed R went into liquidation, and the amountdeemedirrecoverable. This debt was written off as bad.

RestraintTrade Payment:

The company\'s sales manager resigned to explore other opportunities. Givenstronacustomer relationships, a payment of R was made on March to preventfrom joining a competitor or starting a similar business in the province for five years.

Employee Bonuses:

On Decemberthe company paid R in bonuses to its emplovees.

Interest and Penalties Paid:

The employees\' tax for July was paidattracting R in interestpenaltiesfrom SARS

New Lease:

A year lease agreement for a larger factory building was signed on Marchtaccommodate expanded production. A lease premium of R was paid on March with monthly rentals of R starting from thedate. New Machinery Purchased:

To meet increased demand, new machinery was acquired after relocating to the new factory:Machine A news bought for R on Maywith installation costs of R Itbecame operational July Machine B new cost Rincluding Rshipping purchased on January Delivery has been delaved duelcustoms issues.Machinecondhand was acquired for R on December immediately operational.

New Equipment Purchased:

Office equipment worth R was purchased and broughtuse onNovember The Commissioner allows forequipment to be written off over four years on a straightlinebasis

Annuities Paid:

An annuity of R was paid during the yearaassessment to the widow of a formeremployee who died in a workrelated accident in a previous year.

Sale of Land

Land bought for R on January intended for factory construction,sold forR on April after a decision against building due to local unrest.

Assessed Loss Brought Forward:

For the year ended FebruaryCape Town Footwear reported an assessed loss ofR The company does not have any assessed capital loss from previous years.

Required:

Calculate the normalliabilitvTown Footwear Pty Ltdthe vear ofassessment, rounding calculations to the nearest Rand.