Wood Ltd (Kavwood) was incorporated on 2 January 2019 as manufacturer of various household wooden furnitures. On 1 July 2019, the company purchased Machine A for N$ 630 000 and was put into production on the same date of purchase. Machines are depreciated on the straight-line basis at 20% per year with zero residual value. NAMRA allows a wear-and-tear allowance of 1/3 per year on these machines (no allocation is made for parts of a year). Machine A was sold for N$ 300 000 on 30 June 2022 and a replacement machine B was acquired for N$ 1 200 000 on 1 June 2022. Kavwood operates from a rented property and on 1 February 2022 Kavwood received a rent statement from the landlord for the twelve months ending 31 January 2023. The full amount of N$ 138 000 was paid in cash to the landlord on 1 March 2022. NAMRA allows the full rental amount paid as a deduction for tax purposes in 2022. Income received in advance as at 31 December 2022 was N$ 80 000 (2021: N$ 120 000). Profit before tax was correctly calculated as N$ 1 500 000 for the 2022 financial year. Included in profit before tax is dividends received of N$ 200 000 and traffic fines paid of N$ 7 000. Ordinary dividends of N$ 250 000 was paid during the 2022 financial year. The taxable temporary difference as at 31 December 2021 was N$ 195 000. The company expects to earn enough taxable income in the next few years. The standard tax rate has remained unchanged at 32%. There are no other differences between accounting profit and taxable profit other than those evident from the information given. REQUIRED: Marks (a) Provide the income tax expense note for inclusion in the annual financial statements for the year ended 31 December 2022, in accordance with International Financial Reporting Standards. Comparatives are not required. 20