Question 1 (20 marks) Read the scenario below and answer the question that follows: A South African resident company is a small business corporation that manufactures steel fencing for residential and commercial use. The companys manufacturing operation is considered to be a manufacturing process by the South African Revenue Service (SARS). Its year-end is 31 March 2022. During the year of assessment, the company recorded the following transactions: 1. Sales to commercial customers totalled R12 000 000. Sales to residential customers totalled R5 000 000. 2. On 1 April 2021, opening stock was valued at R1 500 000. Stock of R16 000 000 was manufactured by the company during the year. At year-end, stock on hand amounted to R5 750 000. 3. Customers returned defective fences to the value of R760 000 to the company. This amount was included in both the commercial and residential sales amounts above. 4. The company wrote off debts amounting to R125 000. In addition, doubtful debts amounted to R130 000 on 31 March 2021, and R240 000 on 31 March 2022. The SARS Commissioner permits a deduction for doubtful debts at 25% of the list value. 5. The company replaced the machine from its process of manufacture, which had caused the stock failure (see point 3). The machine was taken out of the process on 1 July 2021 and was sold for scrap on 1 August 2021 for R240 000. The machine had been acquired for R2 000 000 on 1 July 2020. It had not been insured. A new machine was acquired on 15 August 2021 for R2 500 000. 6. A donation of R100 000 was made by the company to a local scrap company. The donation was not advertised, and the company received no tax certificate for the donation. 7. Wages and salaries amounted to R1 500 000 for the year of assessment. 8. The company paid provisional tax of R13 000 on 30 September 2021 and a further R6 000 on 31 March 2022. Required: Calculate the tax liability of the company for the year ending 31 March 2022. Note 1. Ignore VAT. 2. Use a zero (0) to indicate items that are not taxable or tax deductible, and provide a reason.(20 marks)