Rhino Cell & Repairs owned by Mr Mark Hilton a resident of the Republic, sells and repairs watches from a shop he leases in a local shopping centre. The company and is registered for value-added tax on the invoice basis. An analysis of the companys receipts and accruals and expenditure for his two-month tax period ending 31 August 2022 is set out below. Unless otherwise stated, all amounts are inclusive of value-added tax when applicable. He makes solely taxable supplies Receipts and accruals R Sales of watches 207 000 Repairs of watches 29 900 Interest 5 175 Indemnity award (note 1) 51 750 Expenditure Bad debts (note 2) 13 225 Bank charges 920 Depreciation (note 3) 19 145 Insurance premiums (note 4) 3 450 Fuel 1 495 Printing and stationery 1 564 Purchases (note 5) 160 245 Salaries 41 400 Rentals (note 6) 13 294 Additional information: 1. The indemnity award of R51 750 was received by Rhino Cell & Repairs from the insurer for two expensive watches that were stolen from his shop in June 2022 2. Bad debts of R13 225 written off by Rhino Cell & Repairs, comprising the following: - R10 350 owing by one of his long-standing customers, from a credit sale. This customer has since emigrated and he has been unable to trace her. - R2 875 was lent to an employee, who left town without repaying the loan. 3. Depreciation (for the two-month tax period) is charged for the following assets owned by the company: Manufacturing equipment that was purchased in a previous tax period for R276 000 (R240 000 plus value-added tax of R36 000) 8000 A computer that was purchased on 1 July 2022 for R14 375 (R12 500 plus value-added tax of R1 875) 695 A motor car that was purchased on 1 August 2022 for R632 500 (R550 000 plus value-added tax of R82 500). The motor car is solely used by Mr Mark Hilton. (He maintains accurate records of his travelling and can prove that his business travelling is 40% of his total travelling.) 10450 19145 4. The insurance premiums of R3 450 were incurred for the following assets that belong to the company: Manufacturing equipment 460 Office computer 230 Motor car 1 035 Trading stock 1 725 3 450 5. The purchases of R160 245 was made up as follows: Purchases of raw materials from vendors 126 500 Second-hand watches purchased (and paid for) from non-vendors 16 675 Second-hand watches purchased from vendors 17 250 160 425 Rhino Cell & Repairs purchases second-hand watches from both vendors (for example, auctioneers) and from non-vendors (for example, private individuals and deceased estates). Mr Mark Hilton displays and sells second-hand watches in his shop 6. Rhino Cell & Repairs rentals of R13 294 are for the following items: Shop premises 10 925 Cash register 1 495 Tea urn (located in the shop for his employees and himself to make tea) 874 13 294 7. Two overseas air tickets costing R5 800 purchased by Rhino Cell & Repairs were given to an employee and his wife as part of the employees salary package. YOU ARE REQUIRED TO determine the value-added tax due to, or from, SARS for Rhino Cell & Repairs two-month tax period that ended on 31 August 2022?