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Study the scenario and complete the question(s) that follow(s): ...

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Accounting

Study the scenario and complete the question(s) that follow(s):
Billy Vein, a construction worker for Candrat Construction Limited (Candrat), overloaded his wheelbarrow while working on the fifth floor of a construction site. The wheelbarrow became unsteady, and Billy lunged to steady it. This caused him to lose his balance and he plunged five floors to his death. His wife, devastated by his death, sued the company for compensation.
In an out-of-court settlement signed on 13 January 2024, Candrat agreed to pay Billys wife a lump sum payment of R1500000 as compensation. Candrat paid the amount on 15 February 2024. In defending the case, Candrat incurred R180000 in legal expenses.
Source: Arendse, J.2024.
Required:
Explain which of the above amounts, if any, Candrat Construction Limited will be permitted to deduct in the determination of its taxable income for the year of assessment ended 31 January 2024.(10) ALSO Marks will be awarded for the above-mentioned technical aspects and general presentation including references to the legislation and case law.

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