Diamond Lodge Limited (Diamond Lodge), a luxury resort situated in the heart of Krugersdorp, is regarded as a home away from home. The resort boasts 145 deluxe rooms and is home to a variety of wildlife and rare bird species. Relaxing around the campfire, going on a game drive, or just spending an afternoon by the pool is some of the best ways to enjoy Diamond Lodge. Diamond Lodge is listed on the Johannesburg Stock Exchange and has a financial year ending on 31 May. The financial manager, Mr. Ron Weasley resigned with immediate effect on 31 January 2023. You have been appointed as the new financial manager of Diamond Lodge. The Chief Financial Officer (CFO), Mr. Tom Riddle, a CA(SA), has requested your assistance with the below matters: Safari Vehicles On 31 October 2022, Mr. Ron Weasley placed an order for 4 safari (game-viewing) vehicles. At a board meeting, which was held on 30 November 2022, the board decided that 4 safari vehicles were one too many to cater for the needs of Diamond Lodge and that only 3 safari vehicles will be used by the company. A subsequent decision was made by the board that the 4th safari vehicle will be leased out. All 4 safari vehicles were delivered to Diamond Lodge on 1 December 2022 and were available for use, as intended by management, as well as brought into use, on this date. The cost of each safari vehicle (which equals its fair value) amounted to R370 000 and was paid in cash on delivery date. The following journal entry, which is correct, is the ONLY journal entry the accountant passed with regards to the acquisition of the four safari vehicles: Date Details Debit R Credit R 1/12/2022 Vehicles (SFP) (370 000 x 4) 1 480 000 Bank (SFP) 1 480 000 (Acquisition of 4 safari vehicles) Diamond Lodge entered into a lease agreement with a neighboring lodge, Pumba Lodge (Pumba) on 1 December 2022, to lease the additional safari vehicle to them. Legal fees amounting to R10 000 was paid by Diamond Lodge, in cash on 1 December 2022, to finalise the lease agreement. The terms of the lease agreement were as follows: The lease will commence on 1 December 2022. The lease term is 4 years. Installments of R120 000 is payable annually in arrears, commencing on 30 November 2023. On expiry of the lease term, Diamond Lodge expects to be able to sell the vehicle for R40 000, but there is no guarantee that this amount will be realised. Ownership of the safari vehicle will not transfer to Pumba Lodge at the end of the lease term. The safari vehicle will be used by Pumba for a qualifying purpose and the lease contract is a lease agreement for income tax purposes. It is the accounting policy of the company to account for vehicles according to the cost model and to provide for depreciation on the straight-line method over its estimated useful life of 5 years. On acquisition date an insignificant residual value was allocated to the 4 safari vehicles. The South African Revenue Service allows a tax allowance on the safari vehicles according to Section 11(e) of the Income Tax Act, according to the straight-line method over 4 years, apportioned for part of a year. The South African Revenue Service tax the lease payments when it is received and do not limit the capital allowance to the taxable lease income of Diamond Lodge. Office property To diversify the business operations, the board of directors decided to purchase an office property which will be held to earn rental income through an operating lease. The office property consisting of a building with 2 floors of office space, situated in Durbans CBD, was purchased for cash, on 1 March 2023, on an auction at the bargain price of R4 000 000. You may assume that the value of the land portion is negligible. In addition to the abovementioned purchase price, Diamond Lodge incurred the following costs on acquisition date, relating to the acquisition of the office property: Legal fees amounting to R30 000 was paid in cash to ensure the validity of the sales transaction as the purchase agreement was prepared by the lawyers. The seller agreed within the purchase agreement to reimburse Diamond Lodge 30% of the legal fees. Property transfer duty of R1 850 000 was paid in cash. On 28 May 2023, Diamond Lodge made a payment of R100 000 to Business Matters, a very popular South African business magazine, to advertise the office property. The contract signed with Business Matters stipulates that the advert will appear in the magazine for the next 6 months, starting from 1 June 2023. Even though Diamond Lodge advertised the office property through leasing agents since acquisition date, the office property was still vacant on 31 May 2023. On 31 May 2023, an independent sworn appraiser determined the fair value of the office property to be R5 900 000. For the period 1 March 2023 to year-end 31 May 2023, Diamond Lodge realised operating losses of R110 000 on this vacant office property. It is the accounting policy of Diamond Lodge to account for investment property according to the fair value model. The South African Revenue service do not grant any tax allowance in respect of this office property whilst the payment of R100 000, made to Business Matters, will be tax deductible. Vending machines On 31 December 2022, Diamond Lodge entered into an exchange transaction, which holds commercial substance, with MachineMania (Pty) Ltd (MachineMania) to exchange their one-door vending machine for a second-hand, bigger, 2-door vending machine. Based on the conditions of the exchange transaction, Diamond lodge will make an additional cash payment on exchange date amounting to R40 000 to MachineMania for the new vending machine. The one-door vending machine was initially purchased on 1 January 2018, for an amount of R175 000 and on this date an insignificant residual value was allocated to it. On 31 December 2022, the carrying amount of the one-door vending machine, correctly calculated, amounted to R29 167, whilst the depreciation for the period 1 June 2022 to 31 December 2022, correctly calculated, amounted to R17 014. On 31 December 2022, the fair value of the one-door vending machine and the two-door vending machine was determined to be R80 000 and R150 000, respectively. The new vending machine was available for use, as intended by management, as well as brought into use on 1 January 2023. An estimated residual value of R20 000 was allocated to the new 2-door vending machine on exchange date. The depreciation for the period 1 January 2023 to 31 May 2023 on the new 2-door vending machine, correctly calculated, amounted to R6 944Considering all the information provided, prepare the following notes to accompany the financial statements of Diamond Lodge Limited for the year ended 31 May 2023: Profit before tax note; and Deferred tax note Please note: Include all the assets and liabilities from the given information within your deferred tax note, even if the deferred tax balance of an item is zero. Indicate within your deferred tax note, if your net deferred tax balance is a deferred tax asset or deferred tax liability. Your deferred tax note does not have to include any qualitative disclosures