Mac CC is a South African Based business with a February financial year end. Mac CC is a Small Business Corporation as defined in section 12E of the Income Tax Act, and a registered VAT vendor (generating 100% taxable supplies). Mac CC acquired a forklift (a non-manufacturing asset) on 1 September 2019, from a fellow subsidiary (connected person as defined), for R115 000 (including VAT) when its market value was R100 000. The forklift was delivered and brought into use on the 1 October 2019. In addition to the forklift, a new plant with a cost price of R1 000 000 (excluding VAT) was purchased and brought into use in its manufacturing operations on 1 December 2019. Mac CC elected to have the section 12E allowance applied as it was more favourable. Calculate the section 12E allowances on the forklift and the new plant for the 2020 year of assessment. 4 Select one: O a. S12E allowances for the forklift is R23 550.72 and for the new plant is R250 000 O b. S12E allowances for the forklift is R42 500 and for the new plant is R1 000 000 O c. S12E allowances for the forklift is R56 521.74 and for the new plant is R1 000 000 O d. S12E allowances for the forklift is R85 000 and for the new plant is R1 000 000 O e. S12E allowances for the forklift is R17 708.33 and for the new plant is R250 000

Mac C is a South African Based business with a February financial year end. Mac CC is a Small Business Corporation as defined in section 12E of the Income Tax Act, and a registered VAT vendor (generating 100\% taxable supplies). Mac CC acquired a forklift (a non-manufacturing asset) on 1 September 2019, from a fellow subsidiary (connected person as defined), for R115 000 (including VAT) when its market value was R100 000. The forklift was delivered and brought into use on the 1 October 2019. In addition to the forklift, a new plant with a cost price of R1 000000 (excluding VAT) was purchased and brought into use in its manufacturing operations on 1 December 2019. Mac CC elected to have the section 12E allowance applied as it was more favourable. Calculate the section 12E allowances on the forklift and the new plant for the 2020 year of assessment. Select one: a. S12E allowances for the forklift is R23 550.72 and for the new plant is R250 000 b. S12E allowances for the forklift is R42 500 and for the new plant is R1 000000 c. S12E allowances for the forklift is R56 521.74 and for the new plant is R1 000000 d. S12E allowances for the forklift is R85 000 and for the new plant is R1 000000 e. S12E allowances for the forklift is R17 708.33 and for the new plant is R250 000