Question 4 (35 Marks) Big bang Pty (Ltd) is a company which is involved in sale of manufacturing goods. The company had the following income and expenses for the year of assessment: 1. The company's income comprised of sales of R5 250 000, dividends of R2 100 000 and interest income of R346 000 2. Legal expenses were incurred during the year of assessment and was as follows: R15 000 for the collection of debts from debtors that had gone bad. R25 000 in a case for suing an employee for a loan that he refused to pay R26 000 for legal costs incurred due to a customer suing the company for supplying a product that was of bad quality The customer had won the legal battle against the company and they were ordered to pay him a settlement amount of R60 000 3. 4. A heavy hail storm had caused damages to the building which amounted to R 24 000 5. The company entered into a restraint of trade agreement with a manager that resigned from employment, the 4 agreement prevents the employee from starting a business of a similar nature for the next 4 years. The amount paid to the manager was R120 000 during the year of assessment. The following bad debts were written off during the year of assessment: 6. Trade debtors = 44 000 Loan given to employee = 20 000 The following bad debts were written off during the previous year of assessment and were recouped during the year of 011 & The following bad debis were writer of during the year of assessment Trade debiors= 44.000 Loan given to employee = 20000 The following bad debis were written on during the previous year of assessment and were recouped during the years of assessmeni ended 31 January 2021 Tade debiors= 124000 7. The accounting provision according to isi for doublebis mounted to R210 000 on for the previous year of assessment and P350 000 for the current year of assesscent & During the year of assesseri, the company granted 10 000 shares to each and every one of is permanent employees at a considez ion of R0.60 a state. These stares have a nominal value of Ri sach. Their market value was RI a share on the date that the grants were approved. No restrictions apply to these shares. The plan in terms of which the states were issued by the company qualites as a broz-based employee share plan in terms of section B. Trading sick urchases of tading stock of R3 500 000 acquired dung the year of assessment and the opening stock and dosing stock was R2 500 000 and R1 830 000 especiely 10. The company had an assessed loss of R40 000 from the 2020 year of assessment 11. The following donations were made during the current year of assessment: Non-public benefit organisation = R220 000 Public benefit organisation = R265 000 YOU ARE REQUIRED TO calculate the normal tax liability of Big Bang Pty (Ltd) for the 2021 year of assessment. Question 4 (35 Marks) Big bang Pty (Ltd) is a company which is involved in sale of manufacturing goods. The company had the following income and expenses for the year of assessment: 1. The company's income comprised of sales of R5 250 000, dividends of R2 100 000 and interest income of R346 000 2. Legal expenses were incurred during the year of assessment and was as follows: R15 000 for the collection of debts from debtors that had gone bad. R25 000 in a case for suing an employee for a loan that he refused to pay R26 000 for legal costs incurred due to a customer suing the company for supplying a product that was of bad quality The customer had won the legal battle against the company and they were ordered to pay him a settlement amount of R60 000 3. 4. A heavy hail storm had caused damages to the building which amounted to R 24 000 5. The company entered into a restraint of trade agreement with a manager that resigned from employment, the 4 agreement prevents the employee from starting a business of a similar nature for the next 4 years. The amount paid to the manager was R120 000 during the year of assessment. The following bad debts were written off during the year of assessment: 6. Trade debtors = 44 000 Loan given to employee = 20 000 The following bad debts were written off during the previous year of assessment and were recouped during the year of 011 & The following bad debis were writer of during the year of assessment Trade debiors= 44.000 Loan given to employee = 20000 The following bad debis were written on during the previous year of assessment and were recouped during the years of assessmeni ended 31 January 2021 Tade debiors= 124000 7. The accounting provision according to isi for doublebis mounted to R210 000 on for the previous year of assessment and P350 000 for the current year of assesscent & During the year of assesseri, the company granted 10 000 shares to each and every one of is permanent employees at a considez ion of R0.60 a state. These stares have a nominal value of Ri sach. Their market value was RI a share on the date that the grants were approved. No restrictions apply to these shares. The plan in terms of which the states were issued by the company qualites as a broz-based employee share plan in terms of section B. Trading sick urchases of tading stock of R3 500 000 acquired dung the year of assessment and the opening stock and dosing stock was R2 500 000 and R1 830 000 especiely 10. The company had an assessed loss of R40 000 from the 2020 year of assessment 11. The following donations were made during the current year of assessment: Non-public benefit organisation = R220 000 Public benefit organisation = R265 000 YOU ARE REQUIRED TO calculate the normal tax liability of Big Bang Pty (Ltd) for the 2021 year of assessment