QUESTION THREE (40 marks) Berty Cooper (Pty) Ltd (the company. a resident of the Republic is a company engaged in the manufacture of cake more. The company's Financial year ends on the last day of February. Betty Cooper (Pty) Lad is not considered to be a small business corporation During the 2020 year of assessment, the company embarked on an expansion project, in order to meet an increase in the demand for their shoes. The following transactions were entered into as part of their expansion Initive gnore VAT for the purposes of this question . Betty Cooper Ply) Las conducts as manufacturing business from a building purchased for R10 000 (of which R200 000 related to the land) on June 2010 Due to the expansion project underway, a need arose to acquire additional promises. The company entered into a 20-year lease agreements 2000 with the owner of the adjacent building, who is also a registered taxpayer Betty Cooper (Pty) Lid took occupation immediately and began production in the ased building. The ms of the lease are as follows Betty Cooper (P) Ltd is required to pay a monthly rental of 85.00 payable on the first day of every month om 12000 Alease premium of RS 000 was payable by Betty Cooper (PyLad on 1 January 2020 A cause in the lease agreement stipulated that the lessons to the improvements to the building at a cost of R60 000. The improvements were completed and brought into use on 1 February 2020. at a cost of R100 000 The improvements to the building are considered to be used in the process of manufacture . On 1 August 2019, the identical machines costing R25 000 each were acquired from Crumble (Pty) Ltd an independent unconnected resident company that also manufactured shows that was sulting down. These machines were onginally purchased new by Crumble (Pty) Ltd and used in as process of manufacture. Beny Cooper PyLad brought the machines into use in its process of manufacture from the date commenced manufacturing in the lowed promises (se above). The market value of each machine on the date of purchase was R30 000 . On 1 December 2015, the company concluded a contract for the purchase of a new cutting machine that was to be used in the process of manufacture, at a cost of RS 000. The supplier of the machine agreed to a delivery date of 15 January 2020 but due to the suppliers employees going on work, the machine was only delivered on 15 February 2020. Due to the delay the supplier agreed to a lower seling price of R15 000. The contract was updated and the supplier invoiced Betty Cooper Pyl Lad for R15 000 which was paid via EFT on the date of delivery, Betty Cooper (Pty) Ltd paid an additional R5 000 for the installation of the machine which took place on 25 February 2020. and the machine was immediately brought into use on that date . New furniture was purchased for the leased premises at a cost of R38 000 on 1 January 2020 and mediately brought into use A new delivery vehicle was purchased and brought into used on 1 February 2000 at a cost of R250 000 The company owns other two delivery vehicles which were purchased on March 2012 at a cost of R120 000 each, which have been fully written for tax purpose On 15 February 2020 one of these vehicles was sold for R50 000 Additional information The Commissioner of SARS has approved the following write-off periods on straight line basis Furniture - 6 years and Delivery vehicles - 4 years Required: Calculate the effects on Betty Cooper (Pryl Lids taxable income arising from each of the transactions listed above for the 2020 year of sent Round off to the nearest Rand Show ALL workings (10 marks) QUESTION THREE (40 marks) Berty Cooper (Pty) Ltd (the company. a resident of the Republic is a company engaged in the manufacture of cake more. The company's Financial year ends on the last day of February. Betty Cooper (Pty) Lad is not considered to be a small business corporation During the 2020 year of assessment, the company embarked on an expansion project, in order to meet an increase in the demand for their shoes. The following transactions were entered into as part of their expansion Initive gnore VAT for the purposes of this question . Betty Cooper Ply) Las conducts as manufacturing business from a building purchased for R10 000 (of which R200 000 related to the land) on June 2010 Due to the expansion project underway, a need arose to acquire additional promises. The company entered into a 20-year lease agreements 2000 with the owner of the adjacent building, who is also a registered taxpayer Betty Cooper (Pty) Lid took occupation immediately and began production in the ased building. The ms of the lease are as follows Betty Cooper (P) Ltd is required to pay a monthly rental of 85.00 payable on the first day of every month om 12000 Alease premium of RS 000 was payable by Betty Cooper (PyLad on 1 January 2020 A cause in the lease agreement stipulated that the lessons to the improvements to the building at a cost of R60 000. The improvements were completed and brought into use on 1 February 2020. at a cost of R100 000 The improvements to the building are considered to be used in the process of manufacture . On 1 August 2019, the identical machines costing R25 000 each were acquired from Crumble (Pty) Ltd an independent unconnected resident company that also manufactured shows that was sulting down. These machines were onginally purchased new by Crumble (Pty) Ltd and used in as process of manufacture. Beny Cooper PyLad brought the machines into use in its process of manufacture from the date commenced manufacturing in the lowed promises (se above). The market value of each machine on the date of purchase was R30 000 . On 1 December 2015, the company concluded a contract for the purchase of a new cutting machine that was to be used in the process of manufacture, at a cost of RS 000. The supplier of the machine agreed to a delivery date of 15 January 2020 but due to the suppliers employees going on work, the machine was only delivered on 15 February 2020. Due to the delay the supplier agreed to a lower seling price of R15 000. The contract was updated and the supplier invoiced Betty Cooper Pyl Lad for R15 000 which was paid via EFT on the date of delivery, Betty Cooper (Pty) Ltd paid an additional R5 000 for the installation of the machine which took place on 25 February 2020. and the machine was immediately brought into use on that date . New furniture was purchased for the leased premises at a cost of R38 000 on 1 January 2020 and mediately brought into use A new delivery vehicle was purchased and brought into used on 1 February 2000 at a cost of R250 000 The company owns other two delivery vehicles which were purchased on March 2012 at a cost of R120 000 each, which have been fully written for tax purpose On 15 February 2020 one of these vehicles was sold for R50 000 Additional information The Commissioner of SARS has approved the following write-off periods on straight line basis Furniture - 6 years and Delivery vehicles - 4 years Required: Calculate the effects on Betty Cooper (Pryl Lids taxable income arising from each of the transactions listed above for the 2020 year of sent Round off to the nearest Rand Show ALL workings (10 marks)