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 R$400000.$ 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 R$350000.$ The building had

originally cost R$500000.$ Both the accumulated depreciation and accumulated wear

and tear amounted to R$300000$ 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 R$40000$ in the form of a dividend.

Dividends received are exempt from tax.

$4.$ Included in the expenses for the year are:Donations of R$150000,$ of which R$100000$ are not deductible for tax

purposes

Fines of R$10000,$ 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 $22\mathrm{.}4\%$

Required:

$2\mathrm{.}1.$ Calculate the taxable profit and current income tax for the year ended

$31$ December $2020.(17)$

$2\mathrm{.}2.$ Prepare the taxation note as at $31$ December $2020.$