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$1\mathrm{.}1$ Anne is a sole proprietor of Fashion X$,$ selling clothing in Cape Town. The current financial year ends on

$29$ February $2024.$The following information relates to the business activities:

$1)$ Profit before tax of R$655\text{ }825,$ before taking the following information into account:

$2)$ Bad debts written off consist of the following:

$\mathrm{·}$ Trade debtors R$15\text{ }000$

$\mathrm{·}$ Loan to employee YY R$12\text{ }000$

Employee YY has left the employment and there is no trace of him.

$3)$ Penalties and interest of R$5\text{ }500$ paid to SARS relating to late submissions of tax returns.

$4)$ Legal Fees to the amount of R$40\text{ }000$ was incurred for the following:

$\mathrm{·}$ Collection of outstanding trade debtors R$25\text{ }000$

$\mathrm{·}$ Court cases regarding employee claims R$10\text{ }000$

$\mathrm{·}$ Legal Appeal to SARS R $6\text{ }000$

$5)$ Prepaid expenditure:

$\mathrm{·}$ Deposit of R$15\text{ }000$ for the purchase of $3$ computers in April $2023.$

$\mathrm{·}$ Fashion X entered into a new contract with a new service provider on $1$ September $2023$ for a $12$ month

period amounting to R$120\text{Â }000.$This amount was included in the total telephone expenses for the year

ending $29$ February $2024$ of R$155\text{ }000.$

$6)$ Amy, manager of Fashion X$,$ decided to retire early. She was paid R$250\text{ }000$ over $2$ years.

$7)$ Salaries of R$75\text{ }000$ was paid in the $2024$ year of assessment.

$8)$ Advertising of R$7\text{ }500$ incurred on I November $2023$ for the launch of a new ladies clothing range.

$9)$ Premiums of R$60\text{ }000$ paid on insurance policies against severe illness and dreaded diseases.

$10)$ Doubtful debts in the previous year amounted to R$25\text{ }000$ and doubtful debts allowance for the current

tear R$35\text{Â }000.$

REQUIRED:

Calculate the taxable income for the $2024$ Year of Assessment after taking into account the deductions. $($

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