QUESTION $7\mathrm{.}3(38$ marks, $68$ minutes$)$Copays manutacturng process has been approved by SARS as a qualfying prooess ofThe iThe compySleep Well obtained valid tax invoices and the required documentation for all its transactions.lGross nroftAn extract fram the dralt statementol comprehensive income lor the year of assessment ending onthe last day of March is given below. Uniess stated otherwise, al amounts exclude VExtract trom the drat statement gl camprebensive incame for the $2024$ year ot assessmentOther incomeal receivedDividend income$2.$ExpenseLease premkum and paymentsLegal expensesRestraint$-$of$-$trade paymentPeearh and developmentNet profit before taxatioNotes$3.$ Depreciation relates to the following assetsQUESTION Z$3($continued$)$and selle$1$ February $2024\mathrm{.}1.$ Incuded in the gross profit is an amount of R$120000$ in respect of export sales toa client inAngola$\mathrm{.}4.$ Lease aremium and paymentstaxable supplies, Al transactioSieep WeP ecevedZ o$01$ Sleep VWel $($Py$)$ Ld purchased a second$-$hand machine on $1$ June z$0$zs o Koo $00.$e$1$ September $2023,$ the machine was destroyed by a fire and an insurance payment obeen taken into account in the above draft statement o comprehensive income$\mathrm{.}5.$ Legal expensesedheee Where$6$ Bad debts witen otOn $1$ October $2023,$ Sleep Wel$($Pry$)$ Lid purchased and brought into use a newreplacementmanufacturing machine at a cost of R$35000.$Trade debtors$$ Sleep Wel $($Pty$)$ Ltd purchased a second$-$hand deivery vehicie from a non$-$vendor for VATpurposes for R$45500$ an $1$ August $2023$ and brought it into use immediately.na or kb $00$ acorued to Sleep Well $($Pty$)$ Lad on $15$ April $2023$ trom ae company purchased three new laptop computers on $1$ February $2023$ at a total cost ofLoan to an empilayee$250000$QUESTION $73($continued$)125000$An office computer wth a cost price of R$25000$ and a tax value of R$12500$ was donated tothe office secretary on $1$ April $2023$ had a market value of R$18000$ on $1$ Aprl $2022\mathrm{.}70000$Sleep Wel $($Py$)$ Lid erected a factory bulding lor an amount of R$4$SO $000$ and brought intoUse in February $2023\mathrm{.}60$ davs$65000$k$.$Sleep Well $($Pty$)$ Lid decided to rent out he erected factory buildng $($reter to note $3$ above$)$ohtar erod The aenatRastraictol$-$trade paymentezz yePension fundPravident fundREOUIREDREQUIREDR$100000$ The improvements were compieted on $29$ February $2024$ at a cost of R$110000.$The buiding was brought into use on $1$ March $2024.($The presentvalue factor of R$1$ overContract $($reler to ngte $41$Sleep Wel $($Pty$)$ Ltd entered into a lease agreement for a bigger factory on $1$ July $2023$ fora $15-$year period with AAA Property Lid at $$S $000$ per month.Alease premium of R$80$ o$00$RI$20008.$ Employer contributions on behalt of emploeesof R$150000.$ The new wing was completed on $1$ September $2023$ and was brought intouse on the same date. The erection costs amounted to R$200000$R$350$ C$4200015000(705000)$amounted to R$27000.$ Sieep Well Pty$)$ Lid does not appy iKS ccounnare as tollowPpes and the debtors that$702000$Kemet cordng to he$0004000$arrearsDuring the $2023$ vear of assessment SARS aranted a doubt debt alowance of R$100001$oSleep Wel $($Pty$)$ Lid$\mathrm{.}95000$income tax liability for Sieep Wel Pty$)$ Ltd for the $2024$ year ossessment Start your answer with net profit before tax of R$702000.$On $1$ August $2023,$ Sleep Well $($Pty$)$ Lid paid an amount of R$70000$ to the former make$-$marketing manager was taxable in his handsINote: Sieeo Well $($Py LId wl make use d any possbie elecionis$)$ that wouldlegally minimise its tax liabiltyMARKS