Kavango Wood Ltd ("Kavwood") was incorporated on 2 January 2019 as manufacturer of various household wooden furniture's. On 1 July 2019, the company purchased Machine A for N\$ 630000 and was put into production on the same date of purchase. Machines are depreciated on the straight-line basis at 20% per year with zero residual value. NAMRA allows a wear-and-tear allowance of 1/3 per year on these machines (no allocation is made for parts of a year). Machine A was sold for N\$ 300000 on 30 June 2022 and a replacement machine B was acquired for N\$ 1200000 on 1 June 2022. Kavwood operates from a rented property and on 1 February 2022 Kavwood received a rent statement from the landlord for the twelve months ending 31 January 2023. The full amount of N\$138 000 was paid in cash to the landlord on 1 March 2022. NAMRA allows the full rental amount paid as a deduction for tax purposes in 2022. Income received in advance as at 31 December 2022 was N\$ 80000 (2021: N\$120 000). Profit before tax was correctly calculated as NS 1500000 for the 2022 financial year. Included in profit before tax is dividends received of N\$ 200000 and traffic fines paid of N\$ 7000. Ordinary dividends of N\$ 250000 was paid during the 2022 financial year. The taxable temporary difference as at 31 December 2021 was N 195000. The company expects to earn enough taxable income in the next few years. The standard tax rate has remained unchanged at 32%. There are no other differences between accounting profit and taxable profit other than those evident from the information given