Pentagon Building Solutions (Pty) Ltd ("PBS") is a South African resident company, which specialises in building and renovating convenience shopping centres. PBS has a 30 June financial year-end. PBS entered into a contract to renovate a convenience shopping centre in Sandton at a total contract price of R1 950 000. Included in the Statement of Financial Position for the year of assessment ending 30 June 2021 is an advanced payment of R900 000 received in terms of the contract. The amount received is not included in the current year's income in the Statement of Profit or Loss and Other Comprehensive Income. There was no income received in advance during the previous year of assessment. In terms of the contract, the renovations will commence on 20 July 2021 and will be completed on 10 November 2021. The total estimated expenditure related to the contract is expected to amount to R1 200 000. On 30 June 2021, the total expenditure actually incurred in terms of the contract amounted to R300 000 for the 2021 year of assessment. These expenses were included in the Statement of Profit or Loss and Other Comprehensive Income for the year of assessment ending 30 June 2021. As far as available information permits, calculate the taxable income of PBS for the year of assessment ending 30 June 2021. Start the calculation with a net profit before tax as per the Statement of Profit or Loss and Other Comprehensive Income of R200 000. For purposes of this question, ignore any VAT implications. a. Taxable income of R253 846 b. Taxable income of R1 100 000 Taxable income of R846 154 Od. Taxable income of R750 000 Taxable income of R546 154 e.

Pentagon Building Solutions (Pty) Ltd ("PBS") is a South African resident company, which specialises in building and renovating convenience shopping centres. PBS has a 30 June financial year-end. PBS entered into a contract to renovate a convenience shopping centre in Sandton at a total contract price of R1 950000 . Included in the Statement of Financial Position for the year of assessment ending 30 June 2021 is an advanced payment of R900000 received in terms of the contract. The amount received is not included in the current year's income in the Statement of Profit or Loss and Other Comprehensive Income. There was no income received in advance during the previous year of assessment. In terms of the contract, the renovations will commence on 20 July 2021 and will be completed on 10 November 2021. The total estimated expenditure related to the contract is expected to amount to R1 200000 . On 30 June 2021, the total expenditure actually incurred in terms of the contract amounted to R300 000 for the 2021 year of assessment. These expenses were included in the Statement of Profit or Loss and Other Comprehensive Income for the year of assessment ending 30 June 2021. As far as available information permits, calculate the taxable income of PBS for the year of assessment ending 30 June 2021. Start the calculation with a net profit before tax as per the Statement of Profit or oss and Other Comprehensive Income of R200 000. For purposes of this question, ignore any VAT nplications. a. Taxable income of R253 846 b. Taxable income of R1 100000 c. Taxable income of R846 154 d. Taxable income of R750 000 e. Taxable income of R546 154