Question 1 (30 Marks) Toy Story Ltd carries on business as a manufacturer of toys from its main branch in the Republic. The company also operates a depot in Botswana, where sales are made to customers living in Botswana. The Botswanan depot does not operate as an independent branch. Toy Story Ltd has been registered as a Category A vendor. All amounts include VAT where appropriate. The following information is provided: Receipts: February R March R 1. Cash sales made by the Republic branch to South African customers 199 300 182 200 Cash sales made by the Botswanan depot to Botswanan customers (these goods were forwarded to the depot on 10 January and were all sold by the end of March) 45 400 56 800 2. Insurance payment received on an insurance claim for trading stock stolen in the Republic 176 500 3. Interest received on a loan to a subsidiary company in the Republic 19 180 4. Cash received for the sale of an old machine to Mr Bell, the majority shareholder. Mr Bell is not a registered vendor. The machine originally cost R20 000 and had a book value of R5 000 on the date of sale. The open market value on the date of sale was R23 480. 16 900 Expenses: February R March R 1. Wages and salaries 69 340 62 500 2. Property rates on the business property 7 210 7 210 3. Electricity and water 6 583 6 355 4. Telephone 6 412 6 070 5. Raw materials purchased from other vendors 142 300 96 700 6. Cost of entertaining important customers at various restaurants in Durban 6 868 6 412 7. Purchase of a new single-cab bakkie for use as a delivery vehicle Cost Finance charges paid 176 500 14 050 8. Cash cost of a new motor car purchased for general use within the business 96 700 9. Petrol for delivery vehicles and the new motor car 6 412 6 526 10. Maintenance of delivery vehicle and the new motor car 6 298 6 412 11. Toy Story purchased three water bottles for the cold water-dispensing machine in the staff canteen. These bottles cost R2 000 each and were paid for in March. 11 500 Required: Calculate the VAT payable by or refundable to Toy Story Ltd in respect of its two-month tax period ended 31 March 2021. (Show detailed workings of how you would deal with each item.) NB: round off your calculations to the nearest Rand.