QUESTION ONE The cost price of the opening stock was R$950000$ and the market value was R$920000$ as on $1$

March $2022.$ The cost price of the closing stock was R$820000$ and the market value was

R$830000$ on $28$ February $2023.$

The following bad debts were written off during the current year of assessment:

Trade debtors $($R$75000)$

Loan to a supplier $($R$15000).$

The company entered into registered learnership agreements $($that fulfil all the section $12$ H

criteria$)$ with Kimmy Vokes and Luya Kabada.

Kimmy Vokes was employed on $1$ September $2022$ as a 'learner' on a full$-$time basis, with a level

$6$ NQF qualification. This qualification will be required to be completed at the end of two years.

Luya Kabada $($a disabled person$)$ was registered as a 'learner' on a part$-$time basis on $1$ March

$2022,$ with a level $8$ NQF qualification. In terms of the registered learnership agreement, the

learnership will be completed at the end of $12$ months. also contributed R$180000$ towards the provident fund on behalf of the company's employees.

Legal expenses were incurred as follows:

Drafting of a restraint of trade agreement amounting to R$12000$ for an employee who had

resigned to start his own business.

The balance of the expenses relate to collection of outstanding trade debtors.

The company paid an annuity of R$35000$ to an ex$-$employee who retired at $65$ years of age

during the current year of assessment.

Included in repairs and maintenance expenditure is an amount of R$500$ paid to the night guard

for repairing the electrical fencing that was damaged in a severe thunderstorm.

On $3$ January $2023,$ the company granted $2000$ shares to $75$ of its permanent staff at no

consideration. The market value per share was R$7$ on the date that the shares were offered and

they carry no restrictions. The plan in terms of which the shares were issued by the company

qualifies as a broad$-$based employee share plan in terms of section $8$ B $.$

The full payment was made to the former operations manager on $1$ December $2022$ for agreeing

not to start a business in South Africa within a period of five years. On $2$ April $2022,$ a new manufacturing machine was acquired which was brought into use on

$1$ June $2022.$ The company elects the Section $12$ C write$-$off allowance.

Required:

Calculate in detail Turden $($Pty$)$ Ltd$.\text{'}$s taxable income for the year ended $28$ February $2023.$

Show all workings and full explanations where applicable.

Turden $($Pty$)$ Ltd is a company located in Pretoria that manufactures cement and building accessories.

The following information is available for the year ended $28$ February $2023($all amounts exclude VAT

unless otherwise stated$)$: