QUESTION$72(35$ marks, $63$ minutes$)$More $($P$)$ Lt manufactures and derbutes mator vetce pat The company i neta sal bprocess has been appraved by SARS as a qualitying process af manutactureThe company is registered as a VAT vendor, making aniy taxable supplies. All transacions areMore $($Pty$)$ LId's business activities commenced on $1$ May $2023$ and its financial year ends on$31$ March The falowing informatian is available to calcuate the taxabile income far the $2024$ yeaaf assessment $($all amounts exclude VAT, unless atherwise stated$)$:Receipts and accrualsTunoveebed$-$ destroved machine BLease premium and rentExpenditure and costsPurchases af trading stock$-$ USAOuntng loss an theft of truckEmpoynetInsurance premamIenal feesNotesDestroxed macbine Rcess af manufacture an $15$ February $2024.$Leane preiun and tentQUESTION Z$2($continued$)$machine was destroyed in a fire an $1$ January $2024$ and Mare $($Pry$)$ Ld received an indemityPurchase ol trasing stock $-$ USAThe applicable exchange rates $($spot$)$ rates were as follows:$1$ January $2024$On $1$ August $2023,$ More $($Py$)$ Lid entered into a lease contract with Pottery $($Pty$)$ Ld$,$ whereb,y$31$ March $2024$A lease premium of RS$00000$ was also paid by Pottery $($Pty$)$ Ld on $1$ August $2023$BA$02-31$ Mardh $2024$ThetoDepreciation and assatsSouth AfricaMore $($Pty$)$ Ltd purchased trading sock for $$10000$ from a suppier in the Unted States ofand was recetved by More $($Py Ld on $8$ Februany $2024$ and brousht into use on the samedate. Ful payment was made on $15$ Aprl $2024.$ Truck$-$refer to note $4$Emplovee expensesMachine B and machine M$-$ refer to note $1.$Salaries and wages.Trademak and patentDepreciation was calculated on all non$-$curent assets, which amounted to R$750000.$Mare $($Pty$)$ Ltd owns$/$owned the fllowing nan$-$current assets during the year of assessment$$ Factary A was erected for R$6000000$ during the six months prior to $1$ May $2023,$ at whichAnnuity paid to famer emplayee $($Busa$)-$retired due toQUESTIONZ$2($continued$)$$$1$ R$7,50$Insurance premium$1$PRO$$Buiding C $($commercial bulding rensed out to Postery Ptd$-$reter nte $2)$ waspuused by More $($Pty$)$ Ltd before rertinn t t t Poeyua andLeae naid ot to$79$g$0($Average rateInterest ona loan. More $($Pty$)$ Ltd incurred costs of R$130000$ to acquire a trademarkNotesMore $($Py$)$ Ld borroLepslleas$11.$ Other indormation$3000000$e$.$ Apatent was purchased for R$4000$ and was brought into use on $1$ June $2023$Draaing up of lease contract $($refer to noe $2)$Legal prooeedings for receiving a government grantREQUIRED$900000320000050000$ng lock on $31$ March $2024-$ cost price...More $($Py$)$ Lad paid the annual insurance premium of R$90000$ on $1$ January $2024($thus$,$ for theperiod from $1$ January $2024$ to $31$ December $2024),15000$doubtful debts as at $31$ March $2024$ have been in arrears for more than $120$ daysBGR No$.7$ allows trucks to be wrtten aff over four $(4)$ years.Calculate the tax liability of More $($Pty$)$ Ltd for the $2024$ year of assessmert.arrowed an amountof Ra bo$0000$ to erect factoryA $($refer to note $5)$ Theng cost was incNote: More $($Pty$)$ Ld wil make use of any possible election$($s$)$ that would legaly$350000075000$o$000$An emplayee with a disability as defined and an NOF level $10$ qualfication entered intolearnership agreement with More $($Pty$)$ Ltd on $1$ June $2023.$ The employee continued with thelearnership agreement unti $31$ March $2023,$ when he successtuly completed $\mathrm{.}412000$s$000$MARKS$35$t of truckRe $($ana$)-$ resigned to work far another