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Denzo (Pty) Ltd (“Denzo”) manufactures and supplies spark plugs to the local automotive industry.  Denzo has a February year-end and is not a Small Business Corporation, as defined in the Income Tax Act. The company accountant has performed a basic tax computation and requires your assistance in calculating the company’s taxable income for the 2021 year of assessment. The accountant has recorded the taxable income as R22 750 000. He has made no allowance for any of the points listed below:  

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