You are a junior tax consultant at Easy Tax, a firm performing accounting and tax related services for its clients. You are currently assigned to the client SA Metals (Pty) Ltd ("SA Metals") and your manager has asked you to complete the income tax liability calculation of the company. You obtain the following information about the company: SA Metals is a South African company that manufactures a wide range of steel products. The company has a corporate office in Johannesburg and two factories, one in Johannesburg and one in Gqeberha (in the Eastern Cape). The company's year of assessment ends on 31 March 2023. It is not a small business corporation as defined in the Income Tax Act. The company accountant supplies you with a taxable income figure of R12 653000 (assume correctly calculated) before taking the tax consequences for each of the assets/transactions below into account. The following information is provided to you for the company's 2023 year of assessment: 1. Extract from the asset tax register Below is a summary of specific assets for which the income tax consequences have not been taken into account for the current year of assessment. Extract from the asset tax register Below is a summary of specific assets for which the income tax consequences have not been taken into account for the current year of assessment. Design and trademarks On 1 January 2023, Design A was registered at a cost of R30 000 and a trademark was acquired at a cost of R65000. Both assets were brought into use in the business on the same date. Research and development costs During the period 1 July 2022 until 30 November 2022 research and development costs (for which the necessary approval was obtained on 20 April 2022) relating to the innovation and improving a specifically designed steel pipe was incurred. It is envisaged that a registered design (Design B) will eventually result from these expenses. The expenses incurred consisted of the following: - Costs incurred relating to consumables used in the development amounted to R375 000 - Costs incurred relating to the sales promotion for Design B amounted to R158 000 4. Payment of traffic fines SA Metals paid traffic fines amounting to R26 800 during the year of assessment ending 31 March 2023. Additional information: Binding general ruling no. 7 makes provision for the following write-off periods, where applicable: You are a junior tax consultant at Easy Tax, a firm performing accounting and tax related services for its clients. You are currently assigned to the client SA Metals (Pty) Ltd ("SA Metals") and your manager has asked you to complete the income tax liability calculation of the company. You obtain the following information about the company: SA Metals is a South African company that manufactures a wide range of steel products. The company has a corporate office in Johannesburg and two factories, one in Johannesburg and one in Gqeberha (in the Eastern Cape). The company's year of assessment ends on 31 March 2023. It is not a small business corporation as defined in the Income Tax Act. The company accountant supplies you with a taxable income figure of R12 653000 (assume correctly calculated) before taking the tax consequences for each of the assets/transactions below into account. The following information is provided to you for the company's 2023 year of assessment: 1. Extract from the asset tax register Below is a summary of specific assets for which the income tax consequences have not been taken into account for the current year of assessment. Extract from the asset tax register Below is a summary of specific assets for which the income tax consequences have not been taken into account for the current year of assessment. Design and trademarks On 1 January 2023, Design A was registered at a cost of R30 000 and a trademark was acquired at a cost of R65000. Both assets were brought into use in the business on the same date. Research and development costs During the period 1 July 2022 until 30 November 2022 research and development costs (for which the necessary approval was obtained on 20 April 2022) relating to the innovation and improving a specifically designed steel pipe was incurred. It is envisaged that a registered design (Design B) will eventually result from these expenses. The expenses incurred consisted of the following: - Costs incurred relating to consumables used in the development amounted to R375 000 - Costs incurred relating to the sales promotion for Design B amounted to R158 000 4. Payment of traffic fines SA Metals paid traffic fines amounting to R26 800 during the year of assessment ending 31 March 2023. Additional information: Binding general ruling no. 7 makes provision for the following write-off periods, where applicable