The statement of profit or loss for Blue Cross (Pty) Ltd for the financial year ended 28 February 2019 is as follows:

Sales (note 1) Cost of sales

Gross profit Salaries Depreciation (note 3) Repairs

Profit from the sale of machinery (note 4) Local dividends received Interest received

Profit before tax

Note 1

R 2000 000 (800 000)

1200 000 (450 000) (100 000) (15 000) 30 000 35 000 28 000

728 000

Blue Cross (Pty) Ltd received a payment in advance of R40 000 from a customer. At year-end the goods still had to be delivered to the customer. This amount has not yet been recognised as revenue for accounting purposes.

Note 2

Blue Cross (Pty) Ltd entered into learnership agreements that qualify for allowances in terms of s 12H. The allowance amounts to R60 000.

Note 3

The equipment qualified for an accelerated allowance of R150 000 in terms of s 12C during the 2019 year of assessment.

Note 4

The machinery was sold for R320 000 on 30 August 2018. The recoupment of allowance for tax purposes amounted to R20 000. A capital gain of R50 000 arose on the disposal.

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Calculate the normal taxable payable by Blue Cross (Pty) Ltd for year of assessment ended on 28 February 2019.