GENERAL INFORMATION You are a junior tax consultant at Tax Easy, a tax consultancy firm. Your manager has assigned tax-related work to you which you must complete for two different clients. Below is information regarding these clients and the tasks you are required to complete. CLIENT 1 (QUESTION 1) (23 marks) Ubuntu Catering (Pty) Ltd (UC) is a manufacturer and supplier of commercial and industrial catering equipment in South Africa. The company has one factory building situated in an industrial area of Johannesburg and offices located in Woodmead Office Park, Johannesburg. The company is not a small business corporation as defined in the Income Tax Act and its year of assessment ends on 31 March. The tasks that you need to attend to relate to the taxable income calculation of the company for the year of assessment ending 31 March 2023. UC informed you that they have elected the section 11(o) scrapping allowance, where applicable, and also the deferral of recoupments, where allowed. The company accountant supplied you with the below incomplete wear and tear and capital allowances calculation relating to the companys fixed assets: Asset Capital/ wear & tear allowance amount Additional information 1. Asset UC1 ? Information is missing 2. Asset UC2 R180 000 Asset UC2 was purchased and brought into use on 1 October 2022 to manufacture steel baking trays. It was purchased for R900 000 from another company that closed and sold their assets, which were all used in the manufacturing process. The capital allowance calculated by the accountant for this asset for the current year was: R900 000 x 40% x 6/12 = R180 000, which is incorrect. 3. Asset UC3 R240 000 Asset UC3 is used in the process of manufacturing commercial ovens. It was purchased new and brought into use on 1 July 2020 for R1 200 000. When factory FF1 was sold (see number 5 below), special transportation was arranged to move UC3 from factory FF1 to factory FF2 on 15 February 2023, at a cost of R48 000. The capital allowance calculated by the accountant for this asset for the current year was: R1 200 000 x 20% = R240 000, which is correct. However, the moving costs have not been dealt with.