QUESTION THREE The accountant of Whack Limited has presented you with the following information relating to its financial year ended 31 December 2020: 1. Profit for the year is R400 000. This profit has been correctly calculated and includes the information presented below. 2. A building was sold on 01 January 2020 at a profit of R350 000. The building had originally cost R500 000. Both the accumulated depreciation and accumulated wear and tear amounted to R300 000 on the date of sale. The base cost used for the calculation of capital gains (in terms of the tax legislation) is equal to the original cost. 3. Included in the income for the year is a receipt of R40 000 in the form of a dividend. Dividends received are exempt from tax. 4. Included in the expenses for the year are: Donations of R150 000, of which R100 000 are not deductible for tax purposes Fines of R10 000, all of which are not deductible for tax purposes 5. Tax related information: No temporary differences arose during the year Income tax is levied at 28% on taxable profits The inclusion rate for capital gains made by companies is 22.4% Required: 1. Calculate the taxable profit and current income tax for the year ended 31 December 2020. 2. Prepare the taxation note as at 31 December 2020