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QUESTION TWO [30] Clueless Ltd is confused about how to calculate the normal tax for...

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Accounting

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QUESTION TWO [30] Clueless Ltd is confused about how to calculate the normal tax for the company. The accountant had a correctly calculated profit before tax of R885 000 after taking into account the following: - Depreciation on office equipment of R88 000 in 2022. The local tax allowed the deduction of R76 000 wear and tear on this equipment in 2022. - Rent income received in advance (taxable when received): 31 December 2021 - R6 500 31 December 2022R7500 - Insurance expense prepaid: 31 December 2021 - R3 000 31 December 2022R6000 - A profit on sale of machinery of R150 000. The machine was acquired on 01 January 2020 at a cost of R600 000 and sold on 31 December 2022. Depreciation is calculated at 25% p.a. straight line to a nil residual value. Wear and allowances of 20% p.a. straight line are granted (depreciation is already included above). - A non deductible traffic fine of R1000. - Dividends received of R60 000. The inclusion rate for capital gains made by companies is 66.6%. The applicable tax rate is 30% on taxable profits. There were no other temporary differences in the year. You are required to assist Clueless Ltd with disclosing the TAXATION

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