Harmony Innovations CC conducts extensive research and development into new products. The company has been growing steadily in the last few years. The following information relates to the $2024$ year$-$end.

Extract of information from the Statement of Profit and Loss and Other Comprehensive Income for the year ended $30$ April $2024$:

$\backslash$table$[[,$Note,Debit,Credit$],[$Revenue$,,,3260000],[$Fair value gain on investment property,$1,,60000],[$Cost of sales,,$1645000,],[$Administration expenses,$2,109100,],[$Depreciation expense,$3,?,],[$Salaries and wages,,$32000,],[$Warranty costs,$4,300,],[$Research and development costs,$5,?,]]$

Additional information:

The investment property had a fair value of R$1200000$ on $30$ April $2023.$ The investment property was initially purchased for R$900000$ and is measured on the fair value model in terms of IAS $40$ Investment properties.

Administration expenses include, amongst other items, the following:

A penalty of R$5000$ for late submission of VAT returns to the South African Revenue Services.

These are prohibited as a deduction for income tax purposes.

Water and electricity expenses of R$11200.$ These are deductible at the earlier of payment or accrual.

The movement in the allowance for credit losses account is included in administration expenses. Trade receivables amounted to R$540000$ at $30$ April $2023,$ and the allowance for credit losses was R$170900$ at $30$ April $2023$ and R$228000$ at $30$ April $2024.$ In accordance with section $11($j$)$ of the Income Tax Act, SARS allows $25\%$ of the loss allowance on trade receivables as a deduction for income tax purposes. Bad debts of R$82000$ were written off during the current year.

The depreciation expense relates to the following assets:

Equipment

All equipment was originally purchased on $1$ February $2022$ at a cost of R$620000.$ The equipment is depreciated on the straight$-$line method over a useful life of $5$ years with a residual value of R$42000.$ SARS allows wear and tear at a rate of $25\%$ per annum $($not apportioned for part of a year$).$ There have been no additions or disposals of equipment.

Vehicles

On $3$ September $2023,$ a vehicle was sold for a cash amount of R$170000.$ This vehicle had a carrying amount of R$200000$ and a tax base of R$150000$ on the date of sale. Depreciation of R$60000$ on all vehicles was correctly accounted for in the trial balance above, of which R$15000$ relates to the vehicle sold. SARS granted wear and tear allowances of R$80000$ on all vehicles for the current reporting period, including $R30000$ relating to the vehicle sold.

The carrying amount of all vehicles was correctly determined to be R$480000$ at

$30$ April $2023.$ The relevant tax base was R$365000$ on $30$ April $2023.$

The vehicles sold were not removed from the assets section in the statement of financial position $($neither was the tax base of the sold vehicle removed from the tax bases.$)$

Harmony Innovations CC sells energy$-$efficient washing machines with a $3-$month warranty which allows customers to return goods that have manufacturing defects for repairs. The warranty provision was correctly estimated to be R$36400$ on $30$ April $2024.$ This was an increase from the provision of R$28600$ recognised for the year ended $30$ April $2023.$ All warranty$-$related costs were correctly recognised in the warranty costs account. SARS allows warranty costs to be deducted when they are actually incurred $($i$.$e$.$ when goods are returned and repaired$).$

Harmony Innovations CC is in the process of developing an advanced smart thermostat system designed to optimise energy usage within residential and commercial buildings. R$200000$ was expensed as research costs in the previous year and R$300000$ development costs were capitalised on $1$ November $2023.$ Development costs are amortised over $8$ years to a nil residual.

SARS allows a $50/30/20$ allowance on research and development costs. SARS makes no distinction between research and development costs.

Harmony Innovations CC is seeking to purchase an advanced energy$-$efficient HVAC $($Heating$,$ Ventilation, and Air Conditioning$)$ system for its main office building in June $2024($the next financial year$).$

The total anticipated cost of the energy$-$efficient HVAC system, including VAT is R$287500.$ The HVAC system has a useful life of $10$ years for accounting purposes, whilst SARS will allow an allowance of $20\%$ over $5$ years. As an incentive to companies to invest in energy$-$efficient infrastructure and adopt sustainable practices within their operations, the tax allowances are calculated based on $120\%$ of the initial cost of the HVAC system.

The balance on the deferred tax liability account amounted to R$71206$ as at $30$ April $2023.$

There are no other taxable or deductible temporary differences other than those listed above.

Profit before tax was correctly determined to be R$2260435$ for the fi