Capri Investments Inc. is a company invented to revolutionalise the information technology sector in Namibia. The company was started in the late 2000s as Namibia was catching up to the rest of the world in technology. Nangoo, Natumbisa & Ngajoo, incorporated the entity & owned 100% of the issued share capital in equal proportion. The company main primary business is the provision of IT support services to large parastatal companies & government ministries. The company also provide IT training to these entities & any other private customers, be it individuals companies or individuals in their own personal capacities. In, addition to the above, the company sells software & hardware IT related products including non-branded laptops. The company has a 28 February year-end, assume that this also represents their tax year. Capri imports their stock from India and China. PART A During the year, the company imported a machine from England which will industrialize their current manufacturing process. The cost of the machine was $ 20,300. The machine arrived in Avishay on 01 May 2018. Assume that on this date the risks & rewards have transferred to Capri. The creditor will be paid in instalments of 50% each; the first instalment being due on 30 June 2018 and the 2nd instalment being due on 31 August 2018. During the financial year, Capri has also purchased 8o laptops from India. This shipment arrived on 30 November 2018, when the risks and rewards were transferred. The creditor was paid on 20th of December 2018.

The following exchange rates have been provided: N$ to 1 Pound ($) N$ to 1 Indian Rupee () 30 June 2018 17.00 5.00 30 November 2018 16.50 5.50 20 December 2018 16.00 5.20 01 May 2018 17.50 4.80 30 June 2018 18.00 4.90 31 August 2018 16.50 4.50

YOU ARE REQUIRED TO: PART A Calculate the foreign exchange gain/loss that Capri should consider in their taxable Income calculation for the tax year ending 28 February 2019. (Indicate whether the gain/loss is taxable or deductible