QUESTION 1 (20 Marks) 1.1 REQUIRED: Calculate the dividends tax payable on the following transactions. (10 marks) INFORMATION: . Ottimo (Pty) Ltd, a resident company that was formed in 2004, has a 31 March financial year-end. The company distributed the following amounts/assets to its sole shareholder, Mr Otto, on 1 July 2018: a cash distribution of R1 000 000; an in specie distribution of trading stock with a market value of R500 000 (the trading stock was acquired on 10 April 2016 at a cost price of R300 000); an in specie distribution of a building with a market value of R1 500 000 (the building was acquired on 12 July 2006 for R1 200 000; the building did not qualify for any capital allowances). A capitalisation issue of equity shares amounting to R150 000 . . 1.2 Discuss five factors that must be considered when deciding on the type of business to trade. (10 marks)