Ngwenya (Pty) Ltd advertises its products on television. It pays a premium once a year. On 1 July 2024 it paid R840 000 for advertisements that will be aired until 30 June 2025.

How much is deductible by Ngwenya (Pty) Ltd in determining it's taxable income for the year of assessment ended February 2025.

On 31 August 2024, Ubuntu (Pty) Ltd purchased a second-hand manufacturing building from MKM (Pty) Ltd for R6 500 000. MKM (Pty) Ltd claimed an allowance on the building when it originally purchased the building new for a cost price of R4 200 000 on 1 March 2024. Ubuntu (Pty) Ltd will primarily use the building in an approved manufacturing process.

Calculate the capital allowance available to Ubuntu (Pty) Ltd on the building for the 2025 year of assessment ending 28/29 February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd had the following expenses during the 2025 year of assessment:

Bad debts from customers = R70 000

Bad debts from a loan to a supplier = R94 000

Ngwenya (Pty) Ltd purchased a trademark called Nix on 1 November 2024 and a patent called Tix on 1 December 2024. The trademark cost was R740 000 and the cost of the patent was R690 000.

Calculate the deduction or allowance available to Ngwenya (Pty) Ltd for the year of assessment ending 28 February 2025.

On 29 February 2024, Ngwenya (Pty) Ltd had a closing stock on hand at the warehouse, valued at R2 300 000. During the 2025 year of assessment the company sold trading stock for R2 800 000. Due to some financial constraints, the company did not buy any trading stock during the 2025 year of assessment and had closing stock valued at R400 000 on 28 February 2025. Assume the cost and market value is the same.

R1 050 000. The machine was brought into use immediately.

Calculate the capital allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd acquired trading stock from Costly Limited for no consideration on 10 January 2025. This trading stock had cost Costly Limited R118 000 and had a market value of R117 000 on the date of the donation. Ngwenya sold this trading stock for R140 000 during February 2025.

Calculate Ngwenya (Pty) Ltd's taxable income for the 2025 year of assessment ended February 2025.

Ngwenya (Pty) Ltd made the following donations during the 2025 year of assessment ending 28 February:

Paint supplies valued at R105 000 were donated to a children's orphanage (a registered public benefit organisation). At year-end Ngwenya (Pty) Ltd is in possession of a section 18A receipt for this donation and the orphanage had painted their premises with the donated paint.

R25 000 cash to a local home shelter. At the time the donation was made, the home shelter was waiting to be registered as a public benefit organisation. At year-end Ngwenya (Pty) Ltd was not in possession of a section 18A receipt for this donation.

What will the donations deduction be for Ngwenya (Pty) Ltd assuming they had a taxable income of R900 000 before taking the above into account?

Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was approved by the Minister of Science and Technology under section 11D(9) on 30 June 2024. The following expenses relating to this research were incurred during the 2025 year of assessment:

-Computer equipment purchased for R1 000 000 was brought into use on 1 September 2024 for the purposes of this research.

-Research consumables for this project were purchased on 31 May 2024 for an amount of R350 000.

-Salaries of R650 000 were paid to research assistants on 31 December 2024.

On 1 February 2024, Ubuntu (Pty) Ltd acquired a new machine for R2 000 000. The machine was brought into use the same day in a process of manufacture.

Calculate the capital allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act.