EduTech $($Pty$)$ Ltd $($EduTech$),$ a South African incorporated entity, is a leading provider of innovative educational technology solutions. EduTech develops e$-$learning platforms, educational software and hardware solutions tailored to the needs of schools, colleges and universities across South Africa.

EduTech has a June financial year$-$end. The company is not a small business corporation as defined for normal tax purposes. EduTech will elect any option available that will defer its normal tax liability.

Below is an extract of the Statement of Profit or Loss and Other Comprehensive Income of EduTech for its $2024$ financial year$-$end.

Notes Rand

Gross profit $1900500$

Other income:

Insurance payout $-$ printer A $140000$

Operating expenses:

Depreciation $$ printer B $1\mathrm{.}1(6667)$

Depreciation $$ administrative office $2(66667)$

Repairs $$ digital whiteboard $3(10000)$

Accumulated leave $4(50000)$

Prepaid lease $5(90000)$

Pension fund contributions $6(180000)$

Restraint of trade payment $7(120000)$

Salaries and wages $8(300000)$

Profit before tax $1117166$

$1.$ EduTech replaced a key piece of manufacturing equipment, a $3$D printer, due to deterioration over time. The original $3$D printer $($Printer A$),$ originally purchased second$-$hand for R$80000$ on $10$ March $2019,$ had become increasingly unreliable and costly to maintain. As a result, EduTech replaced it with a new, unused, more advanced model $($Printer B$)$ on $1$ May $2024,$ at a cost of R$120000.$ Printer B was put into use immediately on the same day. An insurance payment of R$40000$ was received on $30$ April $2024$ from EduTech$$s insurance company for printer A$.$ For accounting purposes, EduTech depreciates printers over a $3-$year period.

$1\mathrm{.}1$ The R$6667$ depreciation expense was recognised, in accordance with the accounting policy of EduTech, for Printer B$.$

$2.$ On $1$ September $2023,$ EduTech purchased a new administrative office space for a total cost of R$800000,$ providing the necessary infrastructure to accommodate its growing team and support its continued expansion. For accounting purposes, EduTech depreciates administrative buildings over a $10-$year period.

$3.$ On $15$ June $2024,$ one of EduTech's digital whiteboards required repairs due to non$-$functional touchscreen functionality. The repair costs totalled R$10000,$ restoring the whiteboard to its original condition.

$4.$ Mr Smith, an employee of EduTech, retired on $31$ March $2024$ and became eligible for a cash payout of R$50000$ in respect of accumulated leave as per the company$$s remuneration policy. EduTech paid Mr Smith R$35000$ of this cash payout on $30$ April $2024,$ with the remaining R$15000$ paid to him on $2$ July $2024.$

$5.$ On $1$ December $2023,$ EduTech entered into a contract with EduBoard $($Pty$)$ Ltd $($EduBoard$),$ whereby EduBoard will lease a digital whiteboard to EduTech. The contract grants EduTech the right to use the digital whiteboard for a period of $12$ months. The contract stipulates a once$-$off lease payment of R$90000,$ which becomes due and payable on the date of signature of the contract.

$6.$ EduTech contributed R$180000$ on behalf of its employees to an approved pension fund during the $2024$ year of assessment.

$7.$ On $1$ January $2024,$ EduTech paid R$120000$ to Learningsphere Technologies $($Pty$)$ Ltd $($LST$)$ after signing an agreement. This agreement includes a restraint of trade clause, preventing LST from directly competing with EduTech in the educational technology sector for a period of two years from the date of payment. LST is classified as a personal service provider as defined in paragraph $1$ of the Fourth Schedule.

$8.$ Salaries and wages comprise the following:

a$)$ The total amount paid to employees in net salaries and wages was R$300000.$

b$)$ Alex Greenway joined EduTech as a full$-$time learner on $1$ June $2024,$ receiving a salary of R$15000$ per month $($which formed part of net salaries and wages expense in $8.$a$).$ Alex entered into a registered learnership agreement with EduTech for three years. Alex has an NQF level $6$ qualification and has no disability. The agreement adheres to all the specifications of the Skills Development Levies Act and is registered with the relevant SETA. No recording was done in EduTech$$s books for this learnership agreement transaction.

EduTech suffered an assessed loss of R$1500000$ during its $2023$ year of assessment.

REQUIRED:

$1\mathrm{.}2$ Assume that EduTech realised a taxable income of R$1150167$ during the $2024$ year of assessment.

Calculate the normal tax liability $($if any$)$ for EduTech $($Pty$)$ Ltd for the $2024$ year of assessment.

An income tax rate of $27\%$ is applicable.

Show all your calculations clearly and round to the nearest rand.