The following information relates to Lavant Limited, a chemical manufacturer, which commenced operations on 1 January 2018. 1. Plant purchases and sales were as follows: Date Cost Sales 1/1/2018 R300 000 Sold 31 December 2020 for R350 000. 30/6/2019 R400 000 Plant costing R100 000 was sold on 31 December 2020 for R70 000. 1/1/2020 R800 000 - 2. The company traded profitably in 2018. In 2019 although the company reported a profit before tax of R30 000,