The information below relates to all cash flow statement questions below

The following information pertains to Sugar CC. Sue and Gar are the only members of the CC.

Extract from ledger account balances as at 30 September:

	2022	2021
	R	R
Members contribution: Sue	278,400	231,000
Members contribution: Gar	278,400	231,000
Retained earnings	20,900	15,200
Long-term loan - ABC Bank	70,300	111,000
Land and buildings at cost	250,000	385,000
Machinery and equipment at carrying amount	170,600	200,700
Inventory	53,000	44,000
Trade receivables control	64,800	95,000
Listed investments	146,900	-
Bank	19,000	30,000
Trade payables control	47,900	38,200
SARS (income tax)	35,000	51,000
Distributions payable	41,000	36,500
	-	-
Accrued expenses (wages)	-	13,000
Prepaid expenses	5,800	2,600
Revenue	655,000
Cost of sales	230,600
Administrative, distribution and other expenses	113,100
Fair value gain on listed investments	2,800
Dividends income	19,900
Loss on sale of machinery and equipment	3,500
Income tax expense	38,800
Depreciation	10,600
Wages	52,300
Insurance expense	9,400

Additional information

2.1 The following pertains to property, plant and equipment:

During the year machinery and equipment with a carrying amount of R110 000 was sold for cash. This transaction has been correctly recorded.

Land and buildings with a cost price of R220 000 were sold for cash at the same amount. Land and buildings are not depreciated.

All purchases of property, plant and equipment pertained to replacements and were paid in full.

2.2 On 28 September 2022 Sugar CC declared a final distribution amounting to R77 800.

2.3 The interest expense paid on the long-term loan amounted to R16 800 and is not yet recorded.

Which of the following alternatives represents the correct amount that must be disclosed as income tax paid in the cash flows from operating activities section according to direct method in the statement cash flows of Sugar CC for the year ended 30 September 2022?

1.

(54 800)

2.

44500

3.

(51900)

4.

80 000