The profit before tax of Max Ltd for the year ended $31$ December $2014$ of R$550000$ includes the following items:The original cost of the building was R$250000$ purchased on $01$ January $2013,$

depreciation was R$20000$ and wear and tear equalled R$20000.$

Proceeds on sale of building amounted to R$280000.$

Dividend income of R$8000($not taxable$).$

Donations of R$40000($Not deductible$).$

Traffic fines of R$50000($Not deductible$).$

Prepaid expenses totalled R$10000$ in the current year and R$5000$ in the prior year.

Income received in advance in the prior year was R$5000.$

The inclusion rate for capital gains made by companies is $50\%.$ The applicable tax rate is $30\%$

on taxable profits. There were no other temporary differences in the year.

Required:

$1\mathrm{.}1.$ Calculate taxable profit for the year. $(8)$

$1\mathrm{.}2.$ Calculate current taxation and deferred taxation. $(7)$

$1\mathrm{.}3.$ Prepare the taxation note for the year. $(6)$

$1\mathrm{.}4.$ Disclose an extract of the income statement from profit before tax. $(4)$