On 29 June 2018, Manufacturing Ltd purchased a new R3.5 million (excluding VAT) machine for its manufacturing process and immediately put it to work (i.e. brought it into use). The company's year-end is 30 September. (i) Calculate the tax allowances that Manufacturing Ltd may claim in terms of section 12C for its financial years ended 30 September 2017 and 30 September 2018. The company is a registered vendor and may claim the value-added tax by way of an input tax credit for VAT purposes. Also show the tax value of this machine as at the end of the years of assessment for 2017 and 2018. (5)

(ii) On the assumption that the R4.8 million was spent on erecting an industrial building on its industrial site rather than purchasing a new machine, redo your calculations as required in part (i) above. Assume the company qualifies for a 5% per annum building allowance. (5)