Walk for Life (Pty) Ltd is a South African resident. It is a manufacturing business that manufactures shoes. The different types of shoes manufactured include running and walking shoes, as well as high heels and flip-flops. The companys financial year ends on 31 March. Walk for Life (Pty) Ltd is a registered VAT vendor and the company does not use the IFRS 9 accounting standard for financial reporting purposes.

The following information is available to calculate the normal tax liability of Walk for Life (Pty) Ltd for the year of assessment ended on 31 March 2023 (all amounts exclude VAT unless otherwise stated): Receipts and accruals Notes R Sales 3 500 000 Dividend income 1 28 000 Expenditure and costs Purchase of raw material 856 520 Inventory 2 ? Bad debts 46 200 Doubtful debts 3 ? Employee expenses 4 806 000 Legal cost 5 23 000 Design acquired 6 41 300 Repairs and maintenance 7 25 000 Electricity 8 36 500 Restraint of trade 9 160 000 Notes:

1.A dividend of R28 000 accrued to Walk for Life (Pty) Ltd on 15 August 2022 from a wholly owned South African subsidiary company.

2. The cost price of the opening stock was R310 000 and the market value was R285 000 as on 1 April 2022. The cost price of the closing stock was R365 000 and the market value was R425 000 on 31 March 2023.

3. The list of doubtful debts as at 31 March 2023 amounted to R69 000. The doubtful debt allowance allowed by the Commissioner for the 2022 year of assessment, amounted to R18 750.

4.Salaries paid during the current year of assessment amounted to R750 000 and the company also contributed R56 000 towards the provident fund on behalf of the companys employees.

5. Legal costs of R23 000 incurred were paid on behalf of one of the companys directors and formed part of his salary as a fringe benefit.

6. Walk for Life (Pty) Ltd incurred an expense of R41 300 in acquiring a design on its childrens shoes that lights up when walking with them. 7.An amount of R25 000 was incurred on painting the entire exterior of the manufacturing building. The building was badly damaged due to excessive rainwater filtering through the cracks.

8. The company paid an amount of R36 500 in respect of electricity for the period 1 March 2022 to 31 October 2022. NB: This calculation should make provision for the prepaid expense incurred.

9. R160 000 was paid to the former financial manager on 1 March 2023 for agreeing not to start a similar business in the Republic within a period of five years. Only R120 000 constituted income in the former employees hands.

You are required to: Calculate Walk for Life (Pty) Ltds taxable income for the 2023 year of assessment.