Factory FF1 was purchased and brought into use by UC on 3 November 2003 for R1 million. The factory was purchased from the previous owner who erected the factory building in 1980 for R800 000. UC undertook major improvements to the factory building which were completed and brought into use in April 2013 at a cost of R1 600 000. On 1 February 2023, UC sold factory FF1 for R2 100 000 and simultaneously purchased factory FF2 for R2 400 000 and brought it into use on the same day. Assume the tax value of factory FF1 at the time of sale is R1 700 000. The accountant has not calculated any capital allowances or other tax consequences regarding the two factory buildings for the current year of assessment.

Calculate the capital allowances relating to Factory FF1 & FF2 for the current year of assessment and any other tax consequences arising from the sale of Factory FF1. Ensure you use brackets to indicate amounts that must be deducted and no brackets for amounts that must be added in the taxable income calculation