Kellogs and WeetbrixLtd. $($a resident company$)$ manufactures different brands of breakfast cereals in the Republic. The company is registered for VAT purposes. The following preliminary income statement of the company for the financial year $1$ November $2021$ to $30$ September $2022$ is at your disposal. All amounts exclude VAT, unless stated otherwise.

Notes:

Note $1$: Kellogs and WeetbrixLtd. earned interest on investments at local financial institutions.

Note $2$: Profit on sale of fixed asset and depreciation provided:

Machine B $($with a tax value of R nil$)$ was sold for R$360000($less than the original cost$)$ on $30$ November $2021$ to a non$-$connected party.

Manufacturing machine C $($new$)$ was purchased on $1$ June $2022$ for R$2500000($including all related qualifying costs$)$ and brought into use on $1$ July $2022$ in the new industrial building in Cape Town.

Two delivery trucks were purchased for R$420000$ each on $1$ June $2022$ and were immediately bought into use. The approved write$-$off period on trucks in terms of Interpretation Note No$.47$ is four years.

The industrial $($factory$)$ building was erected in Gauteng during $2008$ at a total cost of R$20255000,$ and brought into use on $1$ September $2008.$

A contract was concluded on $1$ July $2021$ to erect a new office block at a cost of R$8000000$ in Gauteng. The office block was brought into use on $1$ February $2022.$

Depreciation on motor vehicles and office equipment amounts to R$6900250$ and corresponds with the allowable write$-$off periods as stated in Interpretation Note No$.47.$

Note $3$: Repairs and moving costs consist of:

Note $4$: On $31$ October $2021,$ the company signed a $20-$year lease contract with immediate effect. In terms of the contract, Kellogs and WeetbrixLtd. had to erect another industrial building at a cost of R$20000000$ on the same premises. The lessor gave no further specifications. The building was completed on $30$ June $2022$ at a cost of R$23000000,$ and brought into use on $1$ July $2022.$ The lease premium of R$500000$ was paid on the signing of the contract, and the monthly rental of R$15000$ was payable from the signing of the lease contract. The original industrial building was occupied and brought into use immediately after the signing of the lease agreement.

Note $5$: The following transactions relate to the amount of salaries and wages deducted in the income statement:

One of the research assistants resigned due to differences between herself and the supervisor. She accepted an amount of R$90000$ as part of a restraint of trade agreement. The restraint of trade agreement is valid for a two$-$year period, and the amount was paid on $31$ August $2022.$

On $1$ February $2022,$ Kellogs and WeetbrixLtd. entered into a six$-$month registered learnership agreement with one of its existing disabled employees on an NQF level $7,$ Bran Brown. Kellogs and WeetbrixLtd. complies with all the requirements set by the Commissioner with regards to learnership agreements, in terms of section $12$H$.$

All other amounts included in salaries and wages are tax deductible.

Note $6$: Kellogs and WeetbrixLtd. conducts qualifying technological research and development activities. The research activities were approved by the Department of Science and Technology.

The management of Kellogs and WeetbrixLtd. decided to employ a team of experts, in order to create a new nutritious, affordable breakfast cereal. A patent would ultimately be registered in terms of the Patents Act.

The following amounts were spent during the period $1$ May $2022$ to $30$ September $2022$:

Note $7$: During the year, Kellogs and WeetbrixLtd. registered its environmentally friendly logo as a trademark to be included on all future product packaging. The cost of registering the trademark amounted to R$38800.$

YOU ARE REQUIRED TO:

calculate the taxable income of Kellogs and WeetbrixLtd. for its year of assessment ending on $30$ September $2022,$ starting with the net profit before tax of R$15389085.$

NB: The information included in the notes has already been taken into account when the net profit before tax was calculated.