Marvel $($Pty$)$ Ltd $($Marvel$)$ is a company that prints maps and atlases of the world. The financial accountant has recently resigned and the financial manager has requested that you assist in the preparation of some sections of the financial statements for the year ended $30$ September $2024.$ 

You have been provided with the following information:

$1.$Information specific to the income earned and expenses incurred during the $2024$ financial year:

a$.$ Profit before tax was correctly calculated as R$4285500.$ 

b$.$A ctual gross profit earned during the $2024$ financial year amounted to R$12973500.$ This was R$526500$ less than expected due to inventory stolen during the year. Marvel expects to earn a consistent gross profit percentage on sales of $50\%.$ 

c$.$ The only other income earned during the year was dividend income of R$1417500.$ d$.$ Distribution, administration and operating expenses were split in the ratio $20\%,35\%$ and $45\%$ respectively.

$2.$ Revaluation of plant during the year

a$.$ On $30$ September $2024$ plant with a carrying amount of R$2250000$ was revalued to its fair value of R$3000000.$ This will be realized through use over the plant$’$s remaining useful life of $5$ years.

b$.$ This plant originally cost R$3600000$ when purchased on $1$ October $2021.$ 

$3.$ The net deferred tax liability as at $30$ September $2023$ amounted to R$115500$ and it was made up as follows:

a$.$Property, plant and equipment R$98700($Credit$)$ 

b$.$Provision for doubtful debts R$33600($Debit$)$ 

c$.$  Prepaid rent R$50400($Credit$)\hspace{1em}$ 

$4.$  The following information is relevant in completing the tax expense calculation for the $2024$ financial year:

a$.$  The correct deferred tax closing balance as at $30$ September $2024$ was a credit balance of R$434700.$ 

b$.$  Donations amounting to R$450000$ were made and SARS considered these as non$-$deductible expenses.

c$.$  Depreciation on plant for the $2024$ financial year was R$450000$ and the corresponding wear and tear allowance was R$900000.$ 

d$.$  The provision for doubtful debts balance at $30$ September $2023$ amounted to R$150000$ and at $30$ September $2024$ it amounted to R$135000.$ SARS grants $20\%$ of these provisions as a tax deduction.

e$.$  The prepaid rent balance at $30$ September $2023$ was R$180000$ and at $30$ September $2024$ it amounted to R$108000.$ 

f$.$  The company tax rate remained constant at $28\%$ for all periods under review.

You are required to:

Part A

Prepare the Statement of Comprehensive Income of Marvel $($Pty$)$ Ltd for the year ending $30$ September $2024$ in accordance with IAS$1.$ 

$($Hint: use the function method$)$ 

Comparative figures are not required.

Part B

Explain under which circumstances and to what extent will SARS allow the R$450000$ donations made as a tax$-$deductible expense

Part C

Provide the reasons as to why Marvel must be a VAT Vendor