QUESTION 4 (10 marks; 18 minutes) Consider the following five (5) cases where taxpayers have incurred expenditure: 1. A large manufacturing company incurred R25,000 in travelling expenditure in respect of an overseas trip made by the company's production manager and financial manager. These two managers had travelled overseas to purchase a new manufacturing machine for the company's factory. The machine turned out to be unsuitable, so they returned to SA without making any purchases. Is the R25,000 deductible by the company? [3 marks] 2. A company spends R180,000 on a 5-year advertising contract with an advertising agency. The full R180,000 is payable to the advertising agency in the first year. Is the full R180,000 deductible under s11(a) in the hands of the company in the first year? [4 marks] 3. A manufacturer incurs R15,000 in removal costs for the transportation of a manufacturing machine from an old factory to a new factory. Is the R15,000 deductible under s11(a)? [2 marks] 4. A university professor incurs expenditure on the acquisition of several textbooks. He maintains that he would not be able to correctly perform his job as a lecturer without these textbooks. Is the cost of these textbooks deductible under s11(a)? [1 mark]