Due to the COVID-19 pandemic and the negative financial effects of lockdown, Xolo (Pty) Ltd (Xolo) ceased their manufacturing operations on 31 August 2021 and sold/ceded its assets to Nice Days (Pty) Ltd. Xolo has a December year end. The details of the assets sold/ceded are as follows:

	Note	Amount realised		Book value
Machinery and plant	1	R3,000,000.00		R1,200,000.00
Design (acquired at no cost)		R940,000.00		Rnil
Motor vehicles	1	R188,000.00		R150,000.00
Trading stock (book value is cost)		R2,800,000.00		R2,500,000.00
Leasehold land and buildings	2	R1,000,000.00		R1,564,000.00

Xolo traded from 1 January 2021 until 31 August 2021. The company generated a total net profit of R1 470 000 for the 8 months to just before the date of cessation of the business.

Notes

1. The income tax values and book values of machinery and plant and motor vehicles are the same. The following allowances have been permitted so far: s12C allowance on manufacturing assets R1 440 000 Wear-and-tear allowances motor vehicles R 150 400

2. The book value of the leasehold land and buildings represents a cash premium of R40 000 paid for the right of use of the building, plus R1 524 000 expended on the buildings as part of the lease agreement. Xolo has already deducted R8 000 s11(f) allowance for the premium and R317 500 in terms of s11(g) allowance for the improvements.

Required: Calculate the taxable income of Xolo's (Pty) Ltd on the assumption that it received no other income for the remaining 4 months of the 2021 year of assessment. (18 marks)