Mocktails Ltd, a resident of South Africa with a December year-end, purchased a plot of land on 1 April 2000 for R550 000. Mocktails Ltd erected a factory on the land, costing R2 100 000. The factory is used to manufacture cold drink products for the local market. The erection of the factory was completed on 1 June 2002 and was immediately brought into use.

Mocktails extended its factory which increased the capacity of the factory by 25%. The extension to the factory was completed at a cost of R1 300 000 and brought into use on 1 December 2012.

On 25 September 2021 Mocktails Ltd received an offer for the purchase of the factory from an independent third party and agreed to sell the factory for R6 250 000.

Mocktails Ltd elected the time-apportionment valuation date value to determine the capital gain relating to the disposal of the factory to the third party.

REQUIRED:

Calculate Mocktails Ltds total taxable capital gain or loss for the 2022 year of assessment.

Show all your calculations and round your answers to the nearest rand. Ignore all value-added tax implications.